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Errors Revealed by Trial Balance
Errors Revealed by Trial Balance
Definition:
Trial Balance is a statement prepared with the debit and credit balances of ledger accounts to
verify the arithmetical accuracy of the book.
The Trial Balance checks the equality of debits and credits in the ledger by listing each
account along with its ending balance.
Assets Liabilities
Expenses Capital
Drawings Revenue
Errors in calculation
Any calculation mistake, especially totaling mistake or balancing mistake will be revealed by
Trial Balance as both the side will not match.
Errors of omission of one entry
If by mistake only one entry is made for a transaction, Trial Balance will not balance.
Posting to the wrong side of an account
In case any entry is made on the wrong side of the account, it will be revealed by the Trial
Balance. For example Credit sale of $100 was debited to Sales account.
Posting of wrong amount
When two different amounts are entered for the same entry, both the sides of the Trial balance
will not match. For example, Credit sales of $123 to James. James was debited with $123 but
Sales was wrongly credited as $132.