Errors committed because of failure to make a proper distinction between revenue and capital items are called _____.
Errors of Principle
The correct answer is option 3. Errors of principle occur when an error is made in distinguishing between revenue and capital expenditures. These are typically due to incorrect treatment of costs in the accounts.
Similar Questions
The salary paid to Mr. Viraat, a clerk, for the month of August 2023, debited to the furniture account instead of the salary account will be regarded as an _______.
Classify the following errors:
(i) Credit sale of ₹1,500 to Piyush was correctly recorded in sales book but not posted to Piyush’s Account.
(ii) Purchases book was undercast by ₹100.
Which of the following statement is TRUE in the context of type of errors made while recording a business transaction?
i) A sale of Rs. 500 made to Kamal has been posted on the debit side of Kishore's Account is an example of one-sided error.
ii) A payment of Rs. 1,000 towards interest was posted twice to Interest Account is an example of one-sided error.
Which of the following is/are example(s) of a two-sided error while recording a business transaction?
(i) ₹100 received from Deshmukh was posted to his account as ₹10.
(ii) The Purchases Book is overcast by ₹1,000.
(iii) A credit sale of ₹1,080 to Anand was wrongly recorded in the Sales Book for ₹1,800.
Failure to differentiate between capital and revenue expenditure results in Errors of ______.
If the account of Mr. Jay was debited by Rs. 495 instead of being credited by Rs. 459, the rectification will be done by ______.
If a credit purchase of machinery is recorded in purchase book instead of journal proper it is an error of _______.
Which of the following error, will be rectified through suspense account?
Important Questions from Rectification of Error
If a credit purchase of machinery is recorded in purchase book instead of journal proper it is an error of _______.
Which of the following error, will be rectified through suspense account?
Which one of the following statement is not true?
Which one of the following errors affect the trial balance?
Which one of the following is not a clerical error?
