NCERT · Class 11 · Accountancy · Trial Balance and Rectification of ErrorsWhich of the following errors violates the fundamental principles of accounting?
Step-by-Step Solution
An error of principle occurs when transactions are recorded in contravention of accounting principles, such as treating a capital expenditure as revenue expenditure. Such errors are not revealed by a Trial Balance.
Detailed Options Breakdown
Option : Error of omission
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.
Option 1: Error of principle (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Error of casting
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.
Option 3: Posting error
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.
💡 Study Guide: This question tests core syllabus concepts from Trial Balance and Rectification of Errors. For formulas, key summaries, and mock exam reference guides, read the full Trial Balance and Rectification of Errors Revision Notes.