Compensating Errors : Those errors which nullify the effect of each other are called 'Compensating Errors'. In other words, compensating errors refer to such a group of errors wherein the effect of one error is compensated by the effect of another error or errors. Such errors do not affect the Trial Balance. For example, while posting an entry of Rs. 200 to the debit of Ram's personal account, we wrongly wrote Rs. 400. Then, while posting an entry of Rs. 500 to the debit of some other account we wrote Rs. 300. the first error will result in a higher debit of Rs. 200 whereas the second error will result in a lower debit of Rs. 200. Thus, the effect of the first error is nullified by the effect of the second error. So the Trial Balance will not be affected. Take another example. The Purchases Journal is overcast by Rs. 1 ,OOO which means the Purchases. Account will be debited in excess by Rs. 1,000. The Sales Journal also, by mistake, is overcast by Rs. 1,000 which means the Sales Account will be credited in excess by Rs. 1,000. These two mistakes, together, result in excess debit of Rs. 1,000 as well as an excess credit of Rs. 1,000. Thus, they cancel out each other and the Trial Balance remains unaffected.