Purchase of computer debited to Office Expenditure Account

This error can be classified as a principle error. Let's understand why.

Explanation:
- In accounting, it is important to record transactions accurately and in the correct accounts. Each account has a specific purpose and represents a different category of expenses, assets, liabilities, revenues, etc.
- The Office Expenditure Account is typically used to record expenses related to general office supplies, stationery, repairs, maintenance, etc. It is not appropriate to record the purchase of a computer in this account.
- A computer is considered a fixed asset and should be recorded in the appropriate asset account, such as Computer Equipment Account or Fixed Assets Account. By debiting the Office Expenditure Account, the error has occurred because the wrong account has been debited for the purchase of the computer.
- This error violates the basic principle of accounting, specifically the principle of proper classification and categorization of transactions.
- The principle of proper classification requires that transactions should be recorded in the appropriate accounts to ensure accurate financial reporting and analysis. Recording the purchase of a computer in the Office Expenditure Account misrepresents the nature of the expense and distorts the financial statements.
- To rectify this error, the entry needs to be corrected by debiting the appropriate asset account (Computer Equipment Account) and crediting the cash or accounts payable account, depending on the method of payment used for the purchase.
- By correcting the entry, the financial statements will reflect the true nature of the transaction, and the accounts will be accurately represented in accordance with the accounting principles and standards.

In conclusion, the error of debiting the Office Expenditure Account for the purchase of a computer is a principle error because it violates the principle of proper classification and categorization of transactions.