Which of the following errors will prevent the trial balance from balancing
The objective of preparing trial balance is to a counter check process to test the accuracy of posting. If the trial balance agrees it proves that the books are arithmetically accurate, and the two aspects of the transactions (Debit and Credit) have been recorded in the books of original entry as well as in the ledger. In this article, we will discuss errors in the trial balance and steps to locate errors. Show
Errors affecting Trial BalanceWe know when the sum total of two columns of Trial Balance tallies, then it means that the Trial Balance is in agreement with books of accounts. But it also means that the accounting entries have been arithmetically correct and has been correctly posted in the ledger. But if the Trial Balance does not tally, then there could be errors in transaction entry. Such errors are called ‘Errors affecting trial balance’. These can be:
Errors not affecting Trial BalanceThere are certain types of errors that will not affect tallying of the Trial Balance. i.e. it will tally but still there will be errors. These are as follows:
For the type of errors mentioned above, the identification process is very time-consuming. Only strict vigil and ongoing audit of entries could minimize such errors. Of course, the computerized accounting packages such as Tally.ERP 9 systems do provide built mechanisms to avoid occurrence of these mistakes. After preparation of Trial Balance, if the difference not major, it is temporarily transferred to “Suspense A/c’ until the errors are located and corrected. Errors which are not disclosed by Trial BalanceThere are also errors which cannot be detected by a Trial Balance:
If the Trial Balance does not tally, the following procedure should carefully be followed:
Read More on Trial Balance What is Trial Balance, How to Prepare Trial Balance, Methods to Prepare Trial Balance, Rules & Examples of Trial Balance Which error prevents a trial balance from balancing?A transposition error
If an amount in a ledger account or a balance on a ledger account has been transposed and incorrectly recorded then the trial balance will not balance.
Which of the following errors will affect the trial balance?Only in the cases where errors are in one account effect the trial balance.
Which of the following errors will cause a trial balance to be out of balance quizlet?Which of the following errors will cause an imbalance in the trial balance? Listing the balance of an account with a debit balance in the credit column of the trial balance. understatement of expenses and an understatement of liabilities.
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