Compensating Error
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MS: Kesilapan Saling Imbang · EN: Compensating Error · ZH: 抵消错误
Meaning
A compensating error occurs when two or more separate errors cancel out each other's effect by the same amount. Because an excess debit in one error is offset by an excess credit in another, the trial balance still balances, so it is an error not affecting it. Each error is corrected separately through the general journal.
Example
For example, the Purchases Account is over-debited by RM50 and the Sales Account is over-credited by RM50. The effects offset each other. Correction: Credit Purchases Account RM50 and Debit Sales Account RM50.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4