Cash book and sals ledger
Nominal ledger and sales ledger
Cash book and purchases ledger
Nominal ledger and purchases ledger
Correct answer is C
No explanation has been provided for this answer.
An error of principle is made, if
An entry has been made on the wrong class of account
A transaction has been completely omitted
An entry has been made on the wrong side of the two accounts corrected
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.
A bookkeeper debited Motor Vehicle Account instead of Motor Expenses Account. This is an error of
Commission
Original entry
Complete reversal of entry
Principle
Correct answer is D
No explanation has been provided for this answer.
Which of the following is used to record the disposal of a fixed asset?
Journal proper
Petty cash book
Sales day book
Purchase day book
Correct answer is A
The journal proper is in recording books with original entries used for miscellaneous credit transactions that do not fit into other recorded books. The journal is maintained like a simple journal to record opening entries, closing entries, transfer entries, adjustment entries,rectification entries, and rare transactions.
Purchase account is overcast by ₦200, while wages account is undercast by ₦200. This is
An error of omission
A compensating error
An error of commision
An error of principal
Correct answer is B
Compensating errors are errors equal in amount but opposite in sense that cancel each other. It occurs when one wrong entry neutralizes the impact of another incorrect entry.
For instance when the effect of one transaction is neutralized by another error. When the effect of errors committed cancels out such errors it is called compensating errors.