What is meant by a two-sided error? Explain with an example.

Asked by Topperlearning User | 26th Jul, 2016, 01:33: PM

Expert Answer:

Two-sided errors are those errors which do not affect the agreement of the trial balance. These errors are occur in two or more accounts. Such errors are rectified by passing journal entries. Errors of complete omission, errors of principle and compensatory errors are examples of two sided-errors. For example, credit purchases from Sohan of Rs.15,000 were not recorded in the purchases book. This is an error of complete omission because purchases account is not debited and Sohan’s account is not credited.

Answered by  | 26th Jul, 2016, 03:33: PM