Multiple choice

The entry ''Purchased furniture on credit costing Rs. 20,000 from ABC Furnitures'' has been entered in the purchase book. Which kind of error is it?

  1. Error of commission

  2. Error of omission

  3. Error of principle

  4. Compensatory error

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 In this type of error, an item of nominal account is entered in a real account or vice versa. Here,  furniture is a real a/c and purchase is a nominal  a/c.