GO Classes Test Series 2024 | Mock GATE | Test 14 | Question: 4

Question

Choose the most appropriate alternative from the options given below to complete the following sentence:
Mistakes involving wrong posting are called as errors of _______.

• A. Compensating
• B. Omission
• C. Principle
• D. Posting clerical error

Answer 1

Answer: D

Compensating errors- When a debit item written in credit and credit is written in debit for the same amount.

Error of omission- An item is completely omitted in recording.

Error of principle- Revenue item is charged to capital or vice versa.

Error of Commission or Posting clerical error - Posting of a correct amount in to a wrong account.