Question

Purchase of a laptop for office use wrongly debited to Purchase Account. It is an error of

Q: Answer-Purchase of a laptop for office use wrongly debited to Purchase Account. It is an error of

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.