A mistake that consists of doing something wrong, such as including a wrong amount, or including an amount in the wrong place: No liability is accepted for any errors of commission or omission on this website.

Error of Commission occurs when a transaction is recorded incorrectly due to an error made by the accountant or bookkeeper. In this case, the credit sales being posted to the Purchase Day Book is an example of an error of commission.

Explanation:
1. Definition of an Error of Commission:
An error of commission refers to a mistake made when recording a transaction. It occurs when an accountant or bookkeeper records a transaction incorrectly, either by posting it to the wrong account or by making an error in the amount recorded.

2. Nature of the Error:
In this case, the error occurs when credit sales are posted to the Purchase Day Book. The Purchase Day Book is a record of all purchases made on credit by a business. It is used to track and monitor the amounts owed to suppliers.

3. Impact of the Error:
By incorrectly posting credit sales to the Purchase Day Book, the accountant or bookkeeper is misrepresenting the financial position of the business. Credit sales should be recorded in the Sales Day Book, which is used to track and monitor sales made on credit to customers.

4. Consequences of the Error:
The error of commission in this case can have several consequences. Firstly, the Purchase Day Book will show higher amounts owed to suppliers, which can lead to overpayment or incorrect reporting of liabilities. Secondly, the Sales Day Book will not reflect the correct amount of credit sales, leading to inaccurate reporting of revenue and potentially affecting the accuracy of financial statements.

5. Rectifying the Error:
To rectify the error, the credit sales should be correctly recorded in the Sales Day Book. The incorrect entry in the Purchase Day Book should be reversed, and the appropriate entry should be made in the Sales Day Book. This will ensure that the financial records accurately reflect the credit sales made by the business.

Conclusion:
In conclusion, an error of commission occurs when a transaction is recorded incorrectly due to an error made by the accountant or bookkeeper. In the case of credit sales being posted to the Purchase Day Book, it is an example of an error of commission. This error can have consequences on the accuracy of financial records and should be rectified by recording the credit sales in the appropriate book.