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A credit purchase of machinery recorded in Purchase Book instead of Journal Proper is an example of :
Compensating errors
Errors of commission
Errors of principle
Errors of omission
A credit purchase of machinery mistakenly recorded in the Purchase Book instead of the Journal Proper typically represents:
- Option 1: Compensating errors - Where one error offsets another, which isn't applicable here.
- Option 2: Errors of commission - Involves mistakes in recording amounts, entries, or from a procedural perspective, different accounts, while using the correct accounts’ nature.
- Option 3: Errors of principle - Correct here, as machinery is a capital item and should not be recorded as a purchase, which is for goods sold. It's an error of categorizing nature.
- Option 4: Errors of omission - Skipped or unaffected transactions, which is not the case here.
Option 3 (Errors of principle) is the correct choice
By: Babita ProfileResourcesReport error
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