If incorrect entries on the debit side equal other incorrect entries on the credit side, the error is that of

If incorrect entries on the debit side equal other incorrect entries on the credit side, the error is that of *compensation*. This means that the errors compensate for each other, resulting in the total being unaffected. For example, if a wrong amount is recorded in the debit column, but an equal and opposite error is made in the credit column, the total of the transaction will remain the same, despite the errors. This is referred to as the principle of compensation in accounting, and it helps to ensure that the financial statements are accurate and reliable.