Paper 2 · June 2019 · correction of errors and suspense account
A bookkeeper posts the cost of a new delivery van to the motor expenses account. The trial balance still agrees. What kind of error is this?
AAn error of omission
BAn error of original entry
CA compensating error
DAn error of principle
Explanation
An error of principle enters a transaction in the wrong class of account, here capital expenditure treated as revenue expenditure. The double entry is still complete and equal, so the trial balance is unaffected.
Derived from ZIMSEC Accounting 6001/2 Paper 2, June 2019, Q1