New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Purchase of a laptop for office use wrongly debited to

    Purchase Account. It is an error of
    A Omission Correct Answer Incorrect Answer
    B Commission Correct Answer Incorrect Answer
    C Principle Correct Answer Incorrect Answer
    D Misposting Correct Answer Incorrect Answer

    Solution

    When a purchase of a laptop for office use is wrongly debited to the Purchase Account, it is an error of principle. This type of error occurs when a transaction is recorded in the correct class of accounts but under the wrong category within that class. In this case, the error involves a violation of the accounting principle or concept because an expense (office use) has been incorrectly recorded as a purchase.

    Practice Next