Two or more errors when committed in such a way that there is increase or decrease in the debit side due to an error, also there is corresponding decrease or increase in the credit side due to another error by the same amount. These errors ae known as:

Errors of omission

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Errors of Commission

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Errors of Principle

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Compensating Errors

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
Compensating Errors

These errors are known as Compensating Errors.

Suggest Corrections

Similar questions

Q. When two or more errors are committed in such a way the effect of one error is compensated by another error. Which type of error is this?

Q. Match List-I with List-II and select the correct answer using the codes given the lists.

List-I	List-II
I. Compensating errors	(a) Not recording a business transaction
II. Errors of omission	(b) Charging a Revenue item to capital
III. Errors of principle	(c) Writing a debit item on the credit side and a credit item on the debit side of equal amount
IV. Errors of commission	(d) Posting a correct amount to a wrong account

State whether the following statements are True or False-

1) A trial balance can agree in spite of certain errors.
2) Errors committed due to lack of accounting knowledge are errors of omission.
3) Trial balance is prepared from the balance of ledger accounts.
4) Rectification entries are passed in cash book.
5) Single sided errors affect only one account.
6) Suspense account is automatically closed after rectification of all errors.
7) Errors affecting the agreement of trial balance are called on side errors.
8) There is no need to open a suspense account if the trial balance agrees.
9) All the errors can be rectified only through suspense account.
10) Compensating errors affect the agreement of trial balance.

Q. State whether the following statements are True or False:
Errors committed due to lack of accounting knowledge are errors of omission.

If, after preparation of financial statements of a firm, it is found that some errors or omission in accounts has occurred, then such errors or omissions are rectified in the next year by passing ___

Join BYJU'S Learning Program

Two or more errors when committed in such a way that there is increase or decrease in the debit side due to an error, also there is corresponding decrease or increase in the credit side due to another error by the same amount. These errors ae known as:

The correct option is D Compensating Errors These errors are known as Compensating Errors.

The correct option is D
Compensating Errors

These errors are known as Compensating Errors.