Multiple choice

Sale of office furniture has been credited to sales account. It is

  1. a clerical error

  2. an error of principle

  3. an error of omission

  4. compensating error
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 Correct Entry;- Cash A/c debit  To Office Furniture A/c

 Entry Done :- Cash A/c  debit  To Sales A/c   So this is an error of principle, as it means that the value recorded was the correct value but placed incorrectly.

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