Question

If white washing expense debited in building account it is an error of

• A. Clerical
• B. Duplication
• C. Principle
• D. Omission

Answer 1

Answer:

C. Principle

If whitewashing expense is debited to the Building Account, it is an error of principle ✅. Building Account is a capital account (asset account) and should include capital expenditure only (like cost of construction, purchase, or improvements). Whitewashing is a revenue expenditure (maintenance expense) and should be recorded in the Repairs & Maintenance Account or directly in the Profit & Loss Account. Charging a revenue expense to a capital account violates accounting principles. Type of Error: Error of Principle – violating the basic accounting principle that capital and revenue items must be treated separately.