Describe briefly Compensating Errors.

A.VERIFIED ANSWERfact-checked by tutors

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 11
What is meant by Assets? Also explain its types.
AccountancyCLASS 11
Explain the following terms of Accounting: (a) Sales (b) Revenues (c) Profit (d) Gain (e) Loss (f) Discount (g) Drawings.
AccountancyCLASS 11
Describe the informational needs of external users.
AccountancyCLASS 11
Explain any five advantages of Accounting.
AccountancyCLASS 11
Explain any five limitations of Accounting.
AccountancyCLASS 11
Explain the following terms of Accounting: (a) Expenses (b) Expenditure (c) Debtors (d) Creditors (e) Voucher.