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What is compensatory errors? How to rectify these errors? Explain with illustration.

Vidyadip · Accepted Answer

Compensatory Errors: In the books of accounts, when more than one errors are committed but when their effects are recorded on both debit and credit side with equal amount, Such errors are known as compensatory errors. Here a debit side error of which amount is done same error will be done on credit side then the error of total will not be effect and trial balance tallies e.g. goods of Rs.3,000 sold to Rajesh. Which is posted Rs.300 in his account.Rs.2,700 received from Rakesh which are ommitted by posting in his account. Here Rs.2,700 are less debited in Rajesh's A/c. which error in Rakesh's A/c. Rs.2,700 not credited so becomes equal. Below given journal will be written in journal proper. Date Particulars L.F. Debit(Rs.) Credit (Rs.) Rajesh’s A/c. Dr. 2,700 To Rakesh’s A/c. 2,700 (Being rectification of error of Rajesh's A/c was debited by less amount of Rs.2,700 and Rakesh's A/c. Rs.2,700 was ommited by credited.)

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Date	Particulars		L.F.	Debit(Rs.)	Credit (Rs.)
	Rajesh’s A/c.	Dr.		$2,700$
	To Rakesh’s A/c.				$2,700$
	(Being rectification of error of Rajesh's A/c was debited by less amount of $Rs.2,700$ and Rakesh's A/c. $Rs.2,700$ was ommited by credited.)

P2 C1 Rectiﬁcation ofErrors — Account STD 11 Commerce — Question

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