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Rs. 25,000 received form Aditi, is credited in the account of Prerna. It is an error of :
- a)Principle
- b)Commission
- c)Omission
- d)Compensatory
Correct answer is option 'B'. Can you explain this answer?
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Rs. 25,000 received form Aditi, is credited in the account of Prerna. ...
Error of Commission in Accounting
Introduction:
In accounting, errors are common and can occur due to various reasons. Error of commission is one such type of error, which occurs when an entry is made in a wrong account.
Error of Commission:
Error of commission occurs when an entry is made in a wrong account. For example, if Rs. 25,000 received from Aditi is credited in the account of Prerna, it is an error of commission.
Explanation:
In the given scenario, Aditi has given Rs. 25,000 to Prerna, but by mistake, the amount is credited in the account of Prerna. This is an error of commission because the entry is made in the wrong account.
Types of Errors:
There are three types of errors in accounting, which are as follows:
1. Error of Omission: When a transaction is completely omitted from the books of accounts, it is an error of omission.
2. Error of Commission: When an entry is made in a wrong account, it is an error of commission.
3. Error of Principle: When a transaction is recorded in violation of the accounting principles, it is an error of principle.
Conclusion:
In conclusion, error of commission is a common type of error in accounting, which occurs when an entry is made in a wrong account. It is important to identify such errors and rectify them to ensure accurate financial statements.
Introduction:
In accounting, errors are common and can occur due to various reasons. Error of commission is one such type of error, which occurs when an entry is made in a wrong account.
Error of Commission:
Error of commission occurs when an entry is made in a wrong account. For example, if Rs. 25,000 received from Aditi is credited in the account of Prerna, it is an error of commission.
Explanation:
In the given scenario, Aditi has given Rs. 25,000 to Prerna, but by mistake, the amount is credited in the account of Prerna. This is an error of commission because the entry is made in the wrong account.
Types of Errors:
There are three types of errors in accounting, which are as follows:
1. Error of Omission: When a transaction is completely omitted from the books of accounts, it is an error of omission.
2. Error of Commission: When an entry is made in a wrong account, it is an error of commission.
3. Error of Principle: When a transaction is recorded in violation of the accounting principles, it is an error of principle.
Conclusion:
In conclusion, error of commission is a common type of error in accounting, which occurs when an entry is made in a wrong account. It is important to identify such errors and rectify them to ensure accurate financial statements.
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Community Answer
Rs. 25,000 received form Aditi, is credited in the account of Prerna. ...
An error of commission occurs when an entry is made to the correct type of account but with some incorrect detail, such as the wrong amount or the wrong person's account, as in this case. Crediting Rs. 25,000 received from Aditi to Prerna's account instead of Aditi's or the appropriate account is a mistake concerning the details of the transaction, hence an error of commission. This type involves correct operation but on the wrong subject or some similar detail error.
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Rs. 25,000 received form Aditi, is credited in the account of Prerna. It is an error of :a)Principleb)Commissionc)Omissiond)CompensatoryCorrect answer is option 'B'. Can you explain this answer?
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