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Explain compensating error with examples. |
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Answer» Compensating Error: These errors arise when a mistake made in one direction is compensated by another mistake made in the opposite direction, to the extent of same amount. These errors do not affect the agreement of trial balance. For example: If Purchase of goods from ‘X’ for Rs. 800 is credited to his account as Rs.80 and a purchase from T for Rs. 80 is credited to y’s account as Rs. 800. |
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