Accounting for IGCSE & O level - Accounting Procedures (Section 20 - No. 12)

How does an error of principle affect a trial balance?
It causes the trial balance to be unbalanced.
It makes the trial balance zero.
It makes the trial balance incorrect.
It doesn't affect the trial balance.

Explanation

The numbers and values are correct, but it is posted to the wrong type of account.

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