Question

purchase of machinery is wrongly debited to purchase account is a error of _____​

Answer 1

Answer:

Purchase of machinery is wrongly debited to purchase account is a error  of principle.

Explanation:

As per the double books system of accounting, machinery account is classified as real account.

Error of principle occurs when treating a revenue expense as capital expenditure or vice versa or purchase/sale of fixed asset as ordinary purchases/sale.

Trial balance will tally in case of this type of error.

Rectification entry:

Machinery A/c--------------Dr

          To purchases A/c

(Being rectification entry passed)