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Question
What are compensating errors?
Solution
The errors that make up for each other or neutralize each other are known as compensating errors. These errors may occur in related or unrelated accounts. Thus, excess debit or credit in one account may be compensated by excess credit or debit in some other account. These are also known as offsetting errors.
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RELATED QUESTIONS
Errors not affecting the agreement of trial balance are ______.
A transaction not recorded at all is known as an error of ______.
Wages paid for installation of machinery wrongly debited to wages account is an error of ______.
What is meant by the error of principle?
What is meant by the error of partial omission?
What is meant by the error of complete omission?
Write a note on the error of principle by giving an example.
State the account/s affected in the following error:
The total of purchases book ₹ 4,500 was posted twice.
