ERRORS THAT WILL AFFECT TRIAL BALANCE

Certain errors affects trial balance figures. In this case the trial balance will not balance, it there will be difference in the debit and credit side of the trial balance. The following below are errors that will affect trial balance.

1. Adding Errors
This error occurs when adding a sides in the trial balance. In this situation, after adding on side of the trial balance is higher than the other side of the trial balance.

2. Error of one sided transposition
This error occurs when posting to the ledger. During the posting, one account is correctly posted with the amount but the other account is amount is transposed.

3. Error of casting
In this case there is an overcasting or undercasting of the amount of a particular account. For example, Sales account was undercast by N300.

4. Error of listing
Listing the total of an account that supposed to be on the debit side to the credit side of the trial balance and vise versa.

5. Error of partial omission
Here, an account that make up the double entry for a transaction is omitted. The corresponding entry was not posted to the account.

6. Error of carried forward
In this error, the bookkeeper/accountant fails to carry the correct amount forward to the next month.

7. Onesided double entry.
In this case, the double entry principle is applied but the two account were either debited or credited. For example, sales of goods for cash involve two account, whichnare sales account and cash account. Cash account will be debited and sales account will be credited. However, in this situation, the cash account and sales account were debited and with the same amount.

Further reading:

Subsidiary books.

Accounts and it’s class.

Purposes of financial accounting.

How to prepare bank reconciliation statement with ease.

Why do small business fail.