Answer
Compensating errors are two or more separate errors that cancel each other out in terms of the debit/credit totals—for example, an overcast of a debit balance by 100 and an overcast of a credit balance by 100. Because their net effect on the totals is nil, the trial balance still balances, hiding both errors.
Debit side overcast by 100 and credit side overcast by 100:
totals still agree -> both errors hidden.Real-world example Two offsetting casting errors of 100 each leave the trial balance balanced despite both being wrong.