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Cash paid to jake, N2,500 was entered on the credit side of his account and...

Accounts - Principles of Accounts
WAEC 2016

Cash paid to jake, N2,500 was entered on the credit side of his account and debited to cash account. This is an error of

  • A. Principle
  • B. Commision
  • C. Complete reversal of entries
  • D. Original entry
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Correct Answer: Option C
Explanation

Error of Complete Reversal Entry – As the name implies, this means that the debit and credit entry recorded for a particular transaction are reversed. The transactions are incorrect but because the amount is the same or equal at both sides, the trial balance still balanced.


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