Book Keeping & Accountancy Answer in One Sentence

The error which is committed on one side of the ledger account compensates for an error committed on the other side of some other leader account is called compensating error.

Failure on the part of an accountant to record the business transactions in the books of account is called an error of complete omission. It does not affect the agreement of the trial balance.

An error in which a transaction is correctly recorded in the books of account but one of the postings is wrong is known as partial omission. If will affect the trial balance.

An error committed by the accountant by not following accounting principles properly is called an error of principle.

The correction of accounting errors in a systematic manner is called the rectification of errors.

Mistakes or errors committed while writing the books of accounts are known as accounting errors.

An account that is opened to transfer the difference in the totals of the trial balance is known as a suspense account.

Two-sided errors are those errors that affect both the aspects of a transaction i.e. debit and credit. It does not affect the agreement of the trial balance.

One-sided errors are those errors that either affect the debit or credit aspect of the transaction. It affects the agreement of the trial balance.

An error committed to totaling the amount columns of journal and ledger is called arithmetical error.