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Errors of principle arise when
proper distinction is not made between capital and revenue.
there is an omission of transaction.
wrong amounts are entered in the subsidiary books.
transactions are entered in the wrong subsidiary books.
An error of principle is an accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting. An error of principle is a procedural error, meaning that the value recorded was the correct value but placed incorrectly.
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