Which of the following is an one sided error?
Correct answer: A. 500 being expense on travelling expense credited to travelling expenses
- A. 500 being expense on travelling expense credited to travelling expenses
- B. 500 purchase of old equipment not recorded in the books of A/c at all
- C. Both
- D. None
Explanation
Crediting travelling expenses when the expense should be debited creates an error in one ledger account and causes a trial-balance difference. Complete omission of the equipment purchase affects neither side of the books and is therefore not a one-sided error.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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