Abstract: Considering the usefulness of data transformation in Time Series analysis, the distribution and properties of the left truncated N(1,σ2) error component et of the multiplicative time series model under inverse transformation were studied, with a view to establishing the condition for successful inverse transformation. Using the second order binomial approximation, the first and second moments of the inverse transformed left truncated N(1,σ2) error component et* were found to exist for σ<0.22. Finally the desirable statistical properties of et and et* were found to be approximately the same and normally distributed with unit mean for σ≤0.10. Hence, σ≤0.10 is the recommended condition for successful inverse transformation of the multiplicative time series model whose error component is N(1,σ2).