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A commission of #5000 to a sales manager was debited to debtors account. This is...

Accounts - Principles of Accounts
JAMB 2024

A commission of #5000 to a sales manager was debited to debtors account. This is an error of

  • A. commission
  • B. principle
  • C. original entry
  • D. compensation
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Correct Answer: Option B
Explanation

This type of error occurs when a fundamental accounting rule or concept is violated. In this case, debiting a commission (an expense) to the debtors account (an asset account) goes against the basic principles of double- entry bookkeeping. Debtors accounts represent money owed by customers, and commissions are not related to customer debts.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts