Explanation

This is an error of principle. An error of principle occurs when a transaction is recorded in the wrong type of account, violating fundamental accounting rules. The correct accounts are debited and credited, but the wrong category of account is used.

In this case, commission expense (₦5,000) was wrongly debited to the debtors account. Commission is an expense that should be recorded in an expense account, not an asset account like debtors. Debtors represent money owed to the business by customers.

This error will not affect the trial balance because equal amounts are debited and credited. However, it distorts the true picture of the business. The expenses shown will be understated, and the debtor balances will be overstated.

To correct this error, you would credit the debtors account with ₦5,000 (to reverse the wrong entry) and debit the commission expense account with ₦5,000 (to record it correctly).