JAMB - Accounts Principles Of Accounts (2024 - No. 8)

A commission of #5000 to a sales manager was debited to debtors account. This is an error of
commission
principle
original entry
compensation

Explanation

This type of error occurs when a fundamental accounting rule or concept is violated. In this case, debiting a commission (an expense) to the debtors account (an asset account) goes against the basic principles of double- entry bookkeeping. Debtors accounts represent money owed by customers, and commissions are not related to customer debts.

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