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WAEC Financial Accounting 2014 Question 13

Question 13

Correction of Errors and Suspense Account

An error of principle is made, if

  1. A.an entry has been made in the wrong class of account.
  2. B.a transaction is completely omitted.
  3. C.an entry has been made on the wrong side of the two accounts concerned.
  4. D.a transaction is entered in both accounts for the wrong amount.
Show the answer and explanation

Answer: A (an entry has been made in the wrong class of account.)

Explanation

An error of principle puts an item in the wrong type of account, e.g. treating a fixed asset as an expense.