2023 · Q63
A credit purchase of machinery recorded in Purchase Book instead of Journal Proper is an example of:
General Accounting Principles, Auditing and InsuranceRecording transactions
- ACompensating errors
- BErrors of commission
- CErrors of principle
- DErrors of omission
Explanation
Recording a credit purchase of machinery in the Purchase Book instead of the Journal Proper is not a mere clerical slip (error of commission) or an omission; it violates the accounting principle that only goods purchased for resale go through the Purchase Book while asset purchases go through the Journal Proper. Misapplication of an accounting principle is an error of principle. Hence (c).