Explain errors of principle and give two examples with measures to rectify them

Explanation

Errors of principle ar those errors that ar committed at the time of recording transactions against the accounting standard.

Here ar the samples of Errors of Principle.

(i) Expenses purchased Installation of Machinery Debited to Expenses Account: during this dealings, expenses purchased the installation of machinery that could be a cost and will be debited to machinery account has been treated as revenue expenditure and incorrectly debited sundry expenses account. This error violates the accounting standard.

(ii) quantity Spent on Repair of Machinery Debited to Machinery Account: during this dealings, quantity of repair is revenue expenditure and will be debited to repair account that has been treated as cost and incorrectly debited to the machinery account. This error additionally profaned the accounting standard.