Accounting for IGCSE & O level - Accounting Procedures (Section 13 - No. 9)
A payment of £500 to an employee was credited to the wages account and debited to the bank account. What kind of error occurred?
Error of Principle
Error of Omission
Error of Original Entry
Compensating Error
Explanation
An error of principle occurs when the correct method is not followed, hence the debit and credit were not in the right accounts.
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