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Question -

What are the steps taken by an accountant to locate the errors in the trial balance?



Answer -

An accountant can take the following steps to locate errors in the Trial Balance:

  1. Determine the errors if any by re-recording debit and credit entries in the trial balance.
  2. Check for any omission of account and recording that entry in trial balance.
  3. Check trial balances of previous year and compare with the current year.
  4. Check correctness of all ledgers
  5. Half the difference, then check whether any amount is posted in the wrong column of the Trial Balance.
  6. Try to divide the difference by 9, if it is completely divisible, then it’s an error of transposition of figure, i.e. 123 is written as 132.
  7. Entries of Subsidiary Books should be checked once again if there is difference of Rs 1, Rs 10, Rs 100, Rs 1000, etc., if difference still exists and it is not possible to detect the reason for the difference, then for the time being, that particular difference is transferred to the suspense account in order to proceed further.

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