[amp_mcq option1=”Clerical error” option2=”Error of principle” option3=”Compensating error” option4=”None of these” correct=”option1″]<\/p>\n
The correct answer is A. Clerical error.<\/p>\n
A clerical error is an error made in the process of recording or processing financial information. It is a mistake that is made by the person who is recording the information, and it is not an error in the underlying principle or concept.<\/p>\n
In this case, the machinery was purchased for Rs. 10000, but it was wrongly debited to the purchases account. This is a clerical error because it is a mistake that was made in the process of recording the purchase. The underlying principle or concept of the transaction is correct, but the error was made in recording the amount.<\/p>\n
B. Error of principle is an error that is made in the application of accounting principles. It is a mistake that is made in the way that the financial information is recorded or reported.<\/p>\n
C. Compensating error is an error that occurs when two errors offset each other. This means that the overall effect of the two errors is zero.<\/p>\n
D. None of these is not the correct answer because it does not describe the error that was made.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Clerical error” option2=”Error of principle” option3=”Compensating error” option4=”None of these” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-44472","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n