The causes for which the sums on both sides of the trial balance do not match are as follows: Undetected errors of this type are usually divided into two groups: the trial balance is the only way to detect errors in the accounts, if any. However, errors may remain in the accounts even after the trial balance has been agreed. It is essential to correct account errors, if any. Errors that do not affect the test balance are as follows: However, if the errors affect the debit and credit for the different amount, the test balance does not match. In such a case, a standby account will be used for a trial balance agreement. Entries in the wrong account. This can be seen with a quick glance at the test balance, as an account that previously had no balance now has one. Otherwise, the best form of correction is preventive – use standard log entry templates for all recurring entries. When a short or excess amount is recorded on one side of an account, and when the same amount of short or excess amount is recorded on another side of another account, this is called balancing errors. Entering incorrect numbers in a journal and displaying the same amount on the correct pages of the general ledger accounts is called a commission error and this does not hinder the agreement of the trial balance. (b) after correcting the above errors, prepare a revised profit statement. (6 points) Errors 1 through 5, when detected, are corrected by a log entry between the relevant G/L accounts.
Errors 6 through 9 also require log entries to correct them, but a page of the log entry is on the hold account that was opened for the difference in records. Type 8, trial balance errors, are different. Since the voltage count records the difference, an input is required because the error affects the difference. However, for the other side of the correction, there is no entry in the ledger – the trial balance is simply changed. Errors that affect both debit and credit are called double-sided errors. If the errors affect direct debit and credit for an equal amount of money, the trial balance agrees. This is so called because the incorrect accounting of one account is offset by the incorrect accounting of the same amount on another account and it does not hinder the balancing of the sums of the test balance. .