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    Question

    If wages paid for the installation of new machinery is

    debited to the wages account, it is________________.
    A An error of commission Correct Answer Incorrect Answer
    B An error of principle Correct Answer Incorrect Answer
    C A compensating error Correct Answer Incorrect Answer
    D An error of omission Correct Answer Incorrect Answer

    Solution

    All the expenses paid for purchase of machinery should be debited to machinery account as its a capital expenditure. Hence, Wages paid for installation of machinery debited to wages account is an error of principle.

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