Question

give two examples of error of principle

Answer 1

For example, a company may record personal expenses as business expenses. An error of principle is different than failing to record theitem in question (“error of omission”), or recording the wrong value in the correct account (“error of commission”). These errors are referred to as input errors

Answer 2

Hey mate, here's ur answer,


'Errors of principle' refer to those errors that are committed when recording of transactions is done against the accounting principle. Below given are the examples of error of principle

 

1. Wages paid for construction of building debited to Wages Account

 

In this transaction, wages paid for the construction of building is a capital expenditure and accordingly building account should have been debited. However, in this case, it is treated as revenue expenditure and is debited to Wages Account. This error violates the accounting principle.

 

2. Amount spent on repair of machinery debited to Machinery Account

 

In this transaction, amount of repair is a revenue expenditure and not a capital expenditure. It should have been debited as ‘Repairs’, but was wrongly debited to the Machinery Account.



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