What are compensating errors explain with example?
There are circumstances when the effect of one transaction is neutralized by another error. When the effect of errors committed cancel out such errors are compensating errors. For Example – Goods sold to Mr. X amounted 5000/- was posted to the debit side of X’s account with 500 only.
What are compensating errors known as?
What is compensating error in trial balance?
This is called so because the wrong posting of one account is compensated by the wrong posting of the same amount in another account and this does not hamper equalizing totals of trial balance. For example, Abu account is debited to $400 wrongly instead of $500.
How do you find compensating errors?
What are compensating errors Class 11?
How many errors are committed in compensating errors?
What are compensating errors How are these different from cumulative errors describe with suitable examples?
The error that occurs during the chaining process in the same direction is called as cumulative error. This type of error accumulates with the process of chaining. An error that occurs in either directions during the chaining process is called as compensating error.
When the effect of one error is compensated by another error is called?
What is the meaning of the word compensating?
What is the difference between cumulative and compensating error?
What is bad ranging in surveying?
What is cumulative error?
: an error whose degree or significance gradually increases in the course of a series of measurements or connected calculations specifically : an error that is repeated in the same sense or with the same sign.