Question
Give one example of Compensating error.

Answer

While posting on the debit side of Anil's account, ₹ 80 are posted instead of ₹ 800 and while posting on the debit side of Sunil's account ₹ 800 are posted instead of ₹ 80. These two mistakes will nullify the effect of each other and inspite of the errors in both the accounts, the Trial Balance will still agree.

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