Explain Error of principles with examples.

1.	Explain Error of principles with examples.
Answer» If any accounting rules or principles are violated in recording a transaction, it is an error of principles. This error does not affect the agreement of trial balance. Examples :- 1. Expenses paid for installation of machinery debited to expenses account. 2. The sale of building is credited to sales account. 3. Amount spent on repair of machinery debited to machinery account. 4. Purchase of furniture debited to purchase account.

Answer»

If any accounting rules or principles are violated in recording a transaction, it is an error of principles. This error does not affect the agreement of trial balance.

Examples :-

1. Expenses paid for installation of machinery debited to expenses account.

2. The sale of building is credited to sales account.

3. Amount spent on repair of machinery debited to machinery account.

4. Purchase of furniture debited to purchase account.

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Explain Error of principles with examples.

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