Purchase account is overcast by ₦200, while wages accou...
Purchase account is overcast by ₦200, while wages account is undercast by ₦200. This is
An error of omission
A compensating error
An error of commision
An error of principal
Correct answer is B
Compensating errors are errors equal in amount but opposite in sense that cancel each other. It occurs when one wrong entry neutralizes the impact of another incorrect entry.
For instance when the effect of one transaction is neutralized by another error. When the effect of errors committed cancels out such errors it is called compensating errors.
Given: Capital at the beginning...............N20000 Drawings.............................N3000 C...
Use the following information to answer the given question \(\begin{array}{c|c} & \text{1/1/86} ...
Cost of raw materials available------ 32,000 Manufacturing wages -----10,000 Factory expenses...
Adamu Stores bought accessories from Mu'azu Beverages for N400 on credit. A trade discount of 10...