The purchases of a typewriter for the office was debited to purchases account. This is an error of
Answer Details
The error of debiting the purchase of a typewriter to the purchases account is an error of principle. An error of principle occurs when a transaction is recorded in the wrong account due to a misunderstanding or misinterpretation of accounting principles. In this case, the typewriter is a fixed asset and should have been recorded as such in the fixed assets account, but it was recorded as a purchase in the purchases account, which is used to record the purchases of goods for resale. This error affects the accuracy of the financial statements and may result in incorrect calculations of expenses and profits. To correct the error, a journal entry should be made to debit the fixed assets account and credit the purchases account.