Question
What is meant by Compensating Error?
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Answer
Compensating Error is the error the effect of which is nullified by another error of equal amount.
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Similar questions
Godrej Ltd. imported from Germany one machinery for sale in India and another machinery for production purpose. Will you treat them goods or fixed assets?
Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2017.
| ₹ | |
| Opening stock | 50,000 |
| Net sales | 11,00,000 |
| Net purchases | 6,00,000 |
| Direct expenses | 60,000 |
| Administration expenses | 45,000 |
| Selling and distribution expenses | 65,000 |
| Loss due to fire | 20,000 |
| Closing stock | 70,000 |
Name any two items that are credited to the Trading Account.
What is meant by Provision for Doubtful Debts?
What do you understand by Contingent Liability?
From the following particulars, ascertain the value of Closing Stock :
→|
|
₹
|
|
₹
|
|
Stock in the beginning
|
40,000
|
Purchase
|
4,60,000
|
|
Cah sales
|
2,20,000
|
Purchase Return
|
5,000
|
|
Credit Sales
|
4,10,000
|
Carriage Inwards
|
8,000
|
|
Sales Return
|
30,000
|
Rate of Gross Profit on Cost
|
$\frac{1}{3}$
|
Why is a Compensating Error not disclosed by the Trial Balance?
Ramesh's Trial Balance gives the following information:
Depreciation is provided @ 10% p.a. on the fixed assets. Show how will be shown in the Profit and Loss Account.
Depreciation is provided @ 10% p.a. on the fixed assets. Show how will be shown in the Profit and Loss Account.
What adjustment is made of outstanding expenses while preparing final accounts?
What is meant by Grouping or Marshalling a Balance Sheet?
OR
What is meant by Marshalling of Assets and Liabilities?
OR
What is meant by Marshalling?
OR
What is meant by Marshalling of Assets and Liabilities?
OR
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