what is compensatory error? how to rectify these error? explain with illustration.​

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Answer:

Compensating error is when one error has been compensated by an offsetting entry that's also in error. For example, the wrong amount is recorded in inventory and is balanced out by the same wrong amount being recorded in accounts payable to pay for that inventory.

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Answer:

Compensating errors occur when errors in equal amounts but opposite in sense cancel each other. When an already-committed error is offset by another or set of errors, the latter error is a compensating error.

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