# Error of principle

> Error of principle — An entry posted to the wrong type of account in breach of an accounting rule — a repair capitalized as an asset, a loan receipt booked as revenue. The trial balance still balances; only review finds it.

Source: https://lopifi.com/glossary/error-of-principle
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is error of principle?** In accounting, error of principle means an entry posted to the wrong type of account in breach of an accounting rule — a repair capitalized as an asset, a loan receipt booked as revenue. The trial balance still balances; only review finds it.

## Words this system refuses for it

- error of commission (right type, wrong account)

- **Category:** Core ledger
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** trial-balance, account, revenue, asset