11 Errors Disclosed by a Trial Balance

A Trial Balance will disclose the following errors:

If the Trial Balance does not agree, there must have been some error or errors somewhere in our working.

The following are some of the errors, which cause the Trial Balance to disagree, in brief:

1. Wrong Totaling of Subsidiary Books:

If the total of any subsidiary book is wrongly cast, it would cause a disagreement in the Trial Balance. For instance, Sales book has been under cast by Rs 100. From the Sales book, all the personal accounts have been debited correctly but mistake occurred only in Sales Account, to the extent of Rs 100 (Less). Thus, the Trial Balance disagrees to the extent of Rs 100; credit side falls short of the amount.

2. Posting of the Wrong Amount:

If a wrong amount is posted in one of the two accounts, the Trial Balance disagrees. For instance sales made to Ram for Rs 570, wrongly debited to Ram’s Account with Rs 750, instead of Rs 570. Ram’s account has been over debited by Rs 180. Thus, the debit side of the Trial Balance will exceed by Rs 180. i.e., 750 – 570 = 180.

3. Posting an Amount on the Wrong side of the Account:

For instance, a credit sales made to a customer for Rs 500 has been credited to the customer account, instead of debit. As a result of this error, the credit side of the Trial Balance will exceed by Rs 1,000 (double the amount of the error) because there are two credits one in Sales Account and another in Personal Account and no debit for the transaction.

4. Posting Twice to a Ledger:

For instance, salary of Rs 500 paid has been debited to Salary Account twice by mistake. This will cause disagreement of Trial Balance in debit side by excess of Rs 500.

Apart from the above, the following are some of the common errors, by which Trial balance totals disagree:

5. Omission of an account from the Trial Balance (Cash, Bank etc.):

6. Wrong additions or balancing of ledger accounts.

7. Balance of account written to the wrong side of the Trial Balance.

8. Errors made in preparing the list of Debtors and Creditors.

9. Errors made in carrying forward the total from one page to another page.

10. There may be some items to which double entry is incomplete.

11. Wrong totals of the Trial Balance.

Submitted by : Professor Kayden, Category : Trial Balance