Question

Give two example for compensating errors.

Answer 1

Examples for compensating errors are : 

1. Salary account overcast by Rs. 2000 and Electricity charges undercast by Rs. 2000. 

2. Purchase book is undercast by Rs. 4000 and purchases return under cast by Rs. 2000 and sales return overcast by Rs. 2000.

Comments

How should I enter the first entry in the journal.
What is in the details and Dr and Cr Side?

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In that accounting journal entry, the title of the account to be debited is listed first, followed by the amount to be debited. The title of the account to be credited is listed below and to the right of the debit, followed by the amount to be credited.

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Thanks.