Brief Description:- As we know that the basic purpose of preparing the trial balance is to see the arithmetical errors in the accounts because in accounts, maximum work relates to figure work. Though there are some other errors which occur while preparing the accounts and do not relate to arithmetical errors but these errors can be traced out with proper scrutiny of accounts and different types of cross checks. But, as far as the figure work is concerned, the trial balance is a very helpful to detect the arithmetical mistakes in accounts. When the totals of both side of the trial balance do not agree then it shows that there is a arithmetical mistake in accounts and accountant starts to find out the mistakes relating to figure work.
Examples:- Following arithmetical mistakes can be traced out by preparing the trial balance:-
- Non-posting of journal entries in both sides of the ledger.
- Entering wrong amount in ledger.
- Wrong posting the entries i.e. posting the debit amount in credit side or credit amount in debit side.
- Wrong opening balance taken at the beginning of financial year.
- Wrong totaling of accounts.
- Wrong carry forwarding the total of day book or any account from one page to other page.
- Wrong balancing the accounts.
- Some time what happens is that the balancing is done correctly but in balance column of account, the Dr. is written instead of Cr. and Cr. is written in place of Dr. and the same is shown in trial balance.
- Forgetting to take the balance of some account in trial balance.
- Mistake in copying the figures from ledger to trial balance.
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