The purchase of a typewriter for office use was debited to purchases Account. This is an error of
Question 1 Report
The purchase of a typewriter for office use was debited to purchases Account. This is an error of
Answer Details
The error in which the purchase of a typewriter for office use was debited to purchases account is an error of principle. This is because the transaction was recorded in the wrong account, contrary to the fundamental principle of accounting, which requires transactions to be recorded in their appropriate account. Purchases account is meant for recording the cost of goods purchased for resale, not for office equipment. Therefore, the error in this case is an error of principle.
Download The App On Google Playstore
Everything you need to excel in your exams
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning