Question

If rs 2000 recived from anil is credited to sunil it will be called a. An error of omission b. An error of commission C. An compensating error d. An er

ror of principle

Answer 1

Answer:

sunil A/C. dr. 2000

to anil A/C. 2000

Answer 2

If Rs. 2000 received from Anil is credited to Sunil it will be called as (option c) a compensating error.

• An error of omission: When an entry is missing despite the fact that a transaction took place during that time period, it is considered as an error of omission. Hence, errors of omission occur when an accountant forgets to enter a certain transaction into the records.
• An error of commission: The term "errors of commission" refers to mistakes made when transactions are recorded with incorrect amounts, when balancing is performed incorrectly, when posting is inaccurately, and/or when carrying forward is incorrectly performed.
• A compensating error: When one inaccurate entry balances out the effects of another incorrect entry, compensating errors happen. These entries eliminate the additional error that has been recorded.
• An error of principle: An accounting error of principle is one in which an entry clearly violates a fundamental accounting principle or a fundamental accounting principle set forth by an organization.

Therefore, if Rs. 2000 received from Anil is credited to Sunil it will be called as (option c) a compensating error.

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