MENU
Question -

What kinds of errors would cause difference in the trial balance? Also list examples that would not be revealed by a trial balance?



Answer -

The errors that lead to the differences in the Trial Balance are termed as one-sided errors. These errors affect only one account. Here are some types of errors that can cause difference in trial balance

  1. If any account is wrongly casted, it is termed as the error of casting.
  2. If balances from previous year’s books or from one end of page to another is wrongly carried forward. These types of errors are termed as the errors in carrying forward.
  3. If entries are posted in completely wrong side of the accounts.
  4. On Posting of a wrong amount in account, this is termed as the error of posting.
  5. If entries are recorded partially, then due to the error of partial omission the trial Balance does not agree.
Here are a few examples that would not be revealed in a Trial Balance:

  1. Purchases made from Raj, recorded in Rohit’s Account, who is another creditor
  2. Wages paid for construction of building, recorded in the Wages Account

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
×