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Types of Errors:
Errors affecting Trial Balance (or Errors Disclosed by Trial Balance):
If the Trial Balance does not tally, it will indicate that certain errors have been committed which have affected the agreement of the Trial Balance. The accountant will then proceed to find out the errors and ultimately the errors will be located. Such errors are called 'Errors Disclosed by Trial Balance or Errors which affect the agreement of Trial Balance. Until such errors are rectified, the Trial Balance will not agree. Some of these types of errors are as follows:
Wrong Casting: If the total of the Cash Book or some other Subsidiary Book is wrong, the Trial Balance will not tally. For example, the total of the Purchase book has been added Rs. 2000 in excess. When this total will be posted to the debit side of the purchase account, it will also show an excess debit of Rs. 2000 and hence, the Trial Balance will not tally.
Posting to the Wrong Side: If instead of posting an amount on the debit side of an account, it is posted on the credit side, or vice versa, the Trial balance will not tally. For example, goods for Rs. 2000 from Gopal. If instead of posting the amount on the credit side of Gopal's account it is posted to his debit, the debit side of the Trial Balance will exceed the credit by Rs. 4,000.
Posting of Wrong Amount: The Trial Balance will not tally if the posting in an account is made with an incorrect amount. For example, goods for Rs. 600 have been purchased from Mahendra. If, it has been correctly entered in the Purchase Book or purchase account, but while posting to Mehendra's account, in credit side (correct side) the amount posted is Rs. 60 instead of Rs. 600, the Trial Balance will not tally.
Omission of Posting of One Side of an Entry: For example if Rs. 500 have been received from Ram and correctly entered in the Cash Book or Cash Account but if it is omitted to be posted on the credit side of Ram's Account, the Trial Balance will not tally.
Double Posting in a Single Account: For example if Rs. 500 have been received from Shyam Lal and correctly entered in the Cash Account, but if it is posted twice on the credit side of Shyam Lal's account, the Trial Balance will not tally.
Errors of Totaling and Balancing of Accounts in the Ledger: Errors may occur in the totaling of debit or credit sides of accounts in the Ledger or in the balancing of accounts in the Ledger. Because the balances of accounts are transferred to the Trial Balance, Then the Trial balance will not tally.
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What are the differences between errors disclosed by trial balance and errors not disclosed by trial balance?
Kuch nai barbaad hai ye site
Errors that are not disclosed by trial balance?
compensating errors error of omission error of commission error of principles complete reversal of entries error of original entry
What two types of errors are associated with the trial balance?
Errors that do not affect the trial balance errors that affect the outcome of the trial balance
Is trial balance merely a proof of arithmetical accuracy explain the errors which are not disclosed by a trial balance?
No, it is not a complete proof of arithmetical accuracy of account. A Trial Balance in which the credit and debit accounts match does not prove that, all transactions have been recorded in the proper accounts. For example, the wages paid for the installation of machinery had been erroneously recorded by debiting the wages account in the place of machinery account, the Trial Balance would still agree. Similarly, an agreed Trial Balance does not prove that all transactions have been recorded in the books of original entry. For example, a credit sale invoice were to be completely omitted from being recorded in the sales day book, the error would not be disclosed in the Trial Balance. To conclude, we can say that a trial balance should not be recorded as a conclusive proof of the correctness of the books of account.
Can a trial balance usually has no mathematical errors if the total debit amounts equals total the credit amount?
no
What are the differences between errors disclosed by trial balance and errors not disclosed by trial balance?
Kuch nai barbaad hai ye site
Errors that are not disclosed by trial balance?
compensating errors error of omission error of commission error of principles complete reversal of entries error of original entry
What two types of errors are associated with the trial balance?
Errors that do not affect the trial balance errors that affect the outcome of the trial balance
Errors not revealed by trial balance?
Errors not revealed by trial balance?
When the trial balance indicates that the ledger is in balance you can assume there are no errors in the ledger is this true?
When the trial balance indicates that the ledger is in balance, you can assume there are no errors in the ledger. true or false
Five errors in trial balance?
Answer
Is trial balance merely a proof of arithmetical accuracy explain the errors which are not disclosed by a trial balance?
No, it is not a complete proof of arithmetical accuracy of account. A Trial Balance in which the credit and debit accounts match does not prove that, all transactions have been recorded in the proper accounts. For example, the wages paid for the installation of machinery had been erroneously recorded by debiting the wages account in the place of machinery account, the Trial Balance would still agree. Similarly, an agreed Trial Balance does not prove that all transactions have been recorded in the books of original entry. For example, a credit sale invoice were to be completely omitted from being recorded in the sales day book, the error would not be disclosed in the Trial Balance. To conclude, we can say that a trial balance should not be recorded as a conclusive proof of the correctness of the books of account.
What two types of errors that will require the use of a suspense account?
To make up the difference in trial balance and to rectify all one sided errors. To make up the difference in trial balance and to rectify all one sided errors. To make up the difference in trial balance and to rectify all one sided errors. To make up the difference in trial balance and to rectify all one sided errors. To make up the difference in trial balance and to rectify all one sided errors. To make up the difference in trial balance and to rectify all one sided errors.
What reports alerts you to errors in your books?
trial balance
What are the errors affecting the trial balance?
commission and ommission
What are the errors that affect trial balance?
commission and ommission
Could there be errors in journal entries when the trial balance agrees and if so under what circumstances?
Yes, there could be errors even when the trial balance agrees. For example, the columns in a trial balance would still agree if an entry was omitted or entered incorrectly in the same amounts in corresponding accounts.
