Errors in Trial Balance are mistakes made during the accounting process that cannot always be detected by the trial balance. A trial balance can disagree due to a number of errors. Here we discuss the possibilities of how a trial balances differences.
If there is a non-agreement of trial balance the possible reasons could be the following:
Keeping in view the nature of errors, all the errors can be classified into the following four categories:
The objective of preparing the trial balance is to double-check the 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.
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