Accounting for IGCSE & O level - Accounting Procedures (Section 25 - No. 9)
What is the usual result of a compensating error?
The trial balance will be unbalanced.
The trial balance will still balance.
The debits and credits will switch places.
A suspense account is created.
Explanation
Compensating errors cancel each other out and therefore will not unbalance the trial balance.
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