An error of principle is made, if

Accounts - Principles of Accounts

WAEC 2014

A. an entry has been made on the wrong class of account
B. a transaction has been completely omitted
C. an entry has been made on the wrong side of the two accounts corcened
D. a transaction is entered in both accounts for the wrong amount

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Correct Answer: Option A

Explanation

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.

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