MCQ
Errors of Principle do not allow:
  • A
    Correct totalling of the Balance Sheet.
  • B
    Correct totalling of the Trial Balance.
  • C
    The Trail Balance to agree.
  • None of these.

Answer

Correct option: D.
None of these.
Error of principle is the violation to the basic principles of accounting. In this distinction between capital and revenue items is not made.
In this situation, the trial balance agrees and there is no error in the totaling of balance sheet or trial balance.
This is because, here error is only in method of solving while transactions and amounts are recorded in the right way.

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