If a sale of Rs 500 to Ram is debited as only of Rs 50 to his account, while a sale of Rs 50 to Shyam is debited as of Rs 500 to his account, then which type of error is this?

Errors of omission

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Errors of Commission

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Errors of Principle

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Compensating Error

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Solution

The correct option is D
Compensating Error

Since amount of short debit & credit is equal, therefore it is a compensating error.

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Similar questions

Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance.

(a) Credit sales to Mohan Rs. 7,000 were posted to the credit of his account.

(b) Credit purchase from Rohan Rs. 9,000 were posted to the debit of his account as Rs. 6,000.

(d) Goods returned from Mahesh Rs. 1,000 were posted to the debit of his account as Rs. 2,000.

(e) Cash sales Rs. 2,000 were posted to the debit of sales account as Rs. 5000.

Rectify the following errors assuming that a suspense account was opened.

Ascertain the difference in trial balance.

(a)	Credit sales to Mohan Rs 7,000 were posted to the credit of his account.
(b)	Credit purchases from Rohan Rs 9,000 were posted to the debit of his account as Rs 6,000.
(c)	Goods returned to Rakesh Rs 4,000 were posted to the credit of his account.
(d)	Goods returned from Mahesh Rs 1,000 were posted to the debit of his account as Rs 2,000.
(e)	Cash sales Rs 2,000 were posted to the debit of sales account as Rs 5,000.

Rectify the following errors.

(i) Cash received from Rajat Rs. 5,000 was posted to the debit of Kamal as Rs. 6,000.

(ii) Salary paid to an employee Rs. 2,000 was debited to his personal account as Rs. 1,200.

(iii) Goods withdrawn by proprietor for personal use Rs. 1,000 were credited to sales account as Rs. 1,600.

(iv) Depreciation provided on machinery Rs. 3,000 was posted to machinery account as Rs. 300.

(v) Sale of old car for Rs. 10,000 was credited to sales account as Rs. 6,000.

Trial balance of Kohli did not agree and showed an excess debit of Rs 16,300. He put the difference to a suspense account and discovered the following errors:

(a)	Cash received from Rajat Rs 5,000 was posted to the debit of Kamal as Rs 6,000.
(b)	Salaries paid to an employee Rs 2,000 were debited to his personal account as Rs 1,200.
(c)	Goods withdrawn by proprietor for personal use Rs 1,000 were credited to sales account as Rs 1,600.
(d)	Depreciation provided on machinery Rs 3,000 was posted to Machinery account as Rs 300.
(e)	Sale of old car for Rs 10,000 was credited to sales account as Rs 6,000. Rectify the errors and prepare suspense account.

Q. Sales to Benson Rs. 500 posted to his account as Rs. 504 would affect ___________.

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If a sale of Rs 500 to Ram is debited as only of Rs 50 to his account, while a sale of Rs 50 to Shyam is debited as of Rs 500 to his account, then which type of error is this?

The correct option is D Compensating Error Since amount of short debit & credit is equal, therefore it is a compensating error.

The correct option is D
Compensating Error

Since amount of short debit & credit is equal, therefore it is a compensating error.