A business discovered that $300 of goods purchased on credit from Supplier B had been entered correctly in the purchases account but posted to Supplier A's ...
Question 1 Report
A business discovered that $300 of goods purchased on credit from Supplier B had been entered correctly in the purchases account but posted to Supplier A's account. What type of error is this?
Answer Details
The correct answer is Error of commission.
An error of commission occurs when a transaction is posted to the wrong personal account within the same class of account. Here, the credit entry for the purchase was posted to Supplier A's account instead of Supplier B's account. Both are trade payable accounts (same class), so this is a commission error.
An error of principle would involve posting to a completely wrong class of account (e.g., posting an expense to an asset account). An error of original entry occurs when the wrong amount is recorded in both accounts. An error of omission means the transaction was completely left out of the books.
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