Multiple choice

Match the items from List - I with the items in List - II:

 
List - I
List - II
(a) Error of Principle
(i) A purchase of Rs. 1000/- has not been recorded
(b) Error of Commission
(ii) Treating repair charges as addition to assets
(c) Error of Omission
(iii) A sale of Rs. 563 was posted as Rs. 653
(d) Compensatory error
(iv) Sales book is undercast by Rs. 1000/- and return inward book is overcast by Rs. 1000
(v) Return inward book is undercast by Rs. 1000/- and purchase book is overcast by Rs. 1000/

  1. (a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)

  2. (a)-(ii), (b)-(iii), (c)-(iv), (d)-(v)

  3. (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)

  4. (a)-(ii), (b)-(iii), (c)-(i), (d)-(v)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Error of Principle involves violating accounting principles, like treating revenue expenses (repairs) as capital expenditures. Error of Commission refers to clerical mistakes such as transposition errors. Error of Omission occurs when a transaction is completely unrecorded. Compensating errors happen when two or more errors offset each other's effect, like equal undercast and overcast in different books.

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