Two errors whose net effect on debits and credits is nil are called
AErrors of omission
BCompensating errors
CErrors of principle
DErrors of commission
Answer & Solution
Correct answer: B. Compensating errors
Errors that offset each other so the totals still agree are compensating errors.
Keep practising Trial Balance and Rectification of Errors
Browse all Trial Balance and Rectification of Errors questions for CA Foundation, or explore more Accounting topics.
Related questions
Debit and credit totals of a trial balance must agree becauseTrial balance debit total is Rs 1,00,000 and credit total Rs 96,000. Suspense showsWages of Rs 3,000 for installing a machine were debited to wages. Rectify.Rs 50,000 cash paid for machinery was debited to repairs. Rectify.Goods of Rs 3,500 returned to supplier Sunil were entered in the sales returns book. SunilA credit purchase of Rs 6,000 from Dheeru was entered in the sales book. Dheeru is creditePrior-year errors are rectified via profit and loss adjustment account toCredit purchases of Rs 5,000 from Sachin were posted to his debit side. He is credited in