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Which of the following is an error of commission ?
1. Sales book was overcast by Rs. 600 and purchase book was undercast by the same amount
2. Treating charges as addition to asset
3. A sale of Rs. 6,000 omitted to be recorded
4. A purchase of Rs. 7,400 was wrongly posted

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Correct Answer - Option 4 : A purchase of Rs. 7,400 was wrongly posted

Error of Commission

  • The error of commission is an error that occurs when a bookkeeper or accountant records a debit or credit to the correct account but to the wrong subsidiary account or ledger.
  • For example, money that has been received from a customer is credited properly to the accounts receivable account, but to the wrong customer.
  • A payment to a vendor that's recorded as accounts payable, but to the wrong invoice or vendor is also an error of commission. The error would show as posted to the wrong vendor on the accounts payable subsidiary ledger.
  • In the above question, purchase of Rs. 7400 was wrongly posted although no purchase was made due to which purchase book is overcast by Rs. 7400.

Therefore, option no. 4 is correct.

Errors in Accounting:

Type of Error Meaning Example
Error of principle This type of error arises when the wrong accounting principle is applied while performing the Accounting activities. These errors do not affect the Trial Balance Treating the purchase of an asset as an expense.
Error of Omission This type of error arises when an accountant completely or partially excludes or omits to record an entry in the books of accounts. Complete omission of entry does not affect the Trial Balance while partial omission affects the Trial Balance. Payment of Electricity bill omitted to be recorded
Error of Commission This error arises when an accountant makes correct debit or credit of the accounts but makes mistake in entering the amount or posting to the wrong side in the ledger.  Purchase of fixed assets for Rs. 10,000 posted to the credit of Vendor's account as Rs. 1000
Compensating Errors When one error committed by an accountant compensates another error, it is called compensating error. Purchase of goods from Ram Rs. 1000 Shyam Rs. 4000 recorded as Ram Rs 4,000 and Shaym Rs. 1,000
 

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