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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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