Principle Error in Accounting

Explanation:
Stamp duty is a tax paid on the purchase of a property and it is a legal expense. However, it is not considered a part of the legal expenses. Stamp duty is a part of the cost of the asset and it should be added to the cost of the property. Thus, debiting stamp duty to Legal Expenses A/c is a principle error.

Principle error in accounting occurs when an accounting transaction is not in accordance with the basic accounting principles. These errors occur when an accounting transaction is recorded in a wrong account or when a transaction is not recorded at all.

Principles of Accounting:

The principles of accounting are a set of guidelines established by the accounting profession to ensure that financial statements are prepared accurately and fairly. The principles of accounting are as follows:

1. Entity Concept: The entity concept states that the business is separate from its owners.

2. Going Concern Concept: The going concern concept states that the business will continue to operate in the foreseeable future.

3. Cost Concept: The cost concept states that assets are recorded at their cost of acquisition.

4. Dual Aspect Concept: The dual aspect concept states that every transaction has two aspects - debit and credit.

5. Matching Concept: The matching concept states that expenses should be matched with the revenue they generate.

Conclusion:
In conclusion, debiting stamp duty to Legal Expenses A/c is a principle error in accounting. It violates the cost concept of accounting which states that the assets should be recorded at their cost of acquisition. The stamp duty is a part of the cost of the asset and should be added to the cost of the property.

Answer will be option C,as the commission error is that one when u make errors in totalling of amount,carrying forward a wrong amount etc,omission error is that when u forgot to record some entry or transaction,
but
here u wrongly assume stamp duty as legal expense,as the principle about stamp duty is to treat it as a seprate item.