Error of Principle
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MS: Kesilapan Prinsip · EN: Error of Principle · ZH: 原则错误
Meaning
An error of principle occurs when an amount is recorded in the wrong class of account, breaking an accounting principle, such as an expense recorded as an asset or vice versa. Debit and credit still balance, so it is an error not affecting the trial balance. It is corrected by transferring the amount to the correct type of account.
Example
For example, the purchase of machinery for RM2,000 (an asset) was wrongly recorded in the Purchases Account (an expense). Correction: Debit Machinery Account RM2,000, Credit Purchases Account RM2,000 through the general journal.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4