An error of principle is made, if

A.

An entry has been made on the wrong class of account

B.

A transaction has been completely omitted

C.

An entry has been made on the wrong side of the two accounts corrected

D.

A transaction is entered in both accounts for the wrong amount

Correct answer is A

An error of principle is an accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting. An error of principle is a procedural error, meaning that the value recorded was the correct value but placed incorrectly.