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How can we identify between principle error and error of commission.

Accountancy

How can we identify between principle error and error of commission. Because a mistake in accounting can occur either due lack of knowledge or it might be a mistake in the part of accountant.

Dova Shaji

CA Inter

★ 520

26-Nov-22 14:06

423

Answers (1)

An "error of commission" occurs when an accountant enters a correct figure but in a false subsidiary account of the same type. An error of principle occurs when an accountant enters a correct number into the wrong account, typically one for capital or revenue.

Sowmiya A

CA Inter

★ 19K+

26-Nov-22 14:39