The trial balance is
prepared to check the arithmetical accuracy of account. If the trial balance
does not tally, it implies that there are arithmetical errors in the accounts
which require location, detection and rectification thereof. Even if the trial
balance tallies, there may still exist some errors.
prepared to check the arithmetical accuracy of account. If the trial balance
does not tally, it implies that there are arithmetical errors in the accounts
which require location, detection and rectification thereof. Even if the trial
balance tallies, there may still exist some errors.
Errors may happen at
any of the following stages of the accounting cycle.
any of the following stages of the accounting cycle.
At recording stage;
v Errors of principle
v Errors of commission
v Errors of omission
At posting stage;
Errors of omission
v Complete
v Partial
Errors of commission
v Posting to wrong
account
account
v Posting on the wrong
side
side
v Posting of wrong
amount.
amount.
At balancing stage;
v Wrong totaling
v Wrong balancing