Which of the following is an one sided error?

Correct answer: B. 500 being expense on travelling expense credited to travelling expenses

  • A. 500 purchase of old equipment not recorded in the books of A/c at all
  • B. 500 being expense on travelling expense credited to travelling expenses
  • 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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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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