Describe briefly Compensating Errors.
AccountancyClass 11CBSEAnswered 23 Jun 2026
Answer
When two or more errors are committed in such a way that the effect of these errors on the debits and credits of accounts is nil, such errors are called compensating errors. Such errors do not affect the tallying of the trial balance.
Suggested Q&A
Accountancy · Class 11- AccountancyClass 11What is meant by Assets? Also explain its types.
- AccountancyClass 11Explain the following terms of Accounting: (a) Sales (b) Revenues (c) Profit (d) Gain (e) Loss (f) Discount (g) Drawings.
- AccountancyClass 11Describe the informational needs of external users.
- AccountancyClass 11Explain any five advantages of Accounting.
- AccountancyClass 11Explain any five limitations of Accounting.
- AccountancyClass 11Explain the following terms of Accounting: (a) Expenses (b) Expenditure (c) Debtors (d) Creditors (e) Voucher.