Question

What kinds of errors would cause difference in the trial balance? Also list examples that would not be revealed by a trial balance?

Answer 1

The errors that lead to the differences in the Trial Balance are termed as one-sided errors. These are those errors that affect only one account. Below are given the errors that cause differences in the Trial Balance.

1. Wrong casting of any account, this is termed as the error of casting.

2. Wrong carrying forward of the balances from previous year’s books or from one end of page to another. These types of errors are termed as the errors in carrying forward.

3. If entries are posted in the wrong side of accounts.

4. Posting of a wrong amount in account, this is termed as the error of posting.

5. If entries are recorded partially, i.e., the entries are not recorded completely, then due to the error of partial omission, Trial Balance does not agree.

Here are a few examples that would not be revealed in a Trial Balance:

1. Sales to Mr. X, omitted to be recorded in the Sales Day Book
2. Purchases made from Mukesh, recorded in Mahesh’s Account, who is an other creditor
3. Wages paid for construction of building, recorded in the Wages Account