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

There are four kinds of errors which cause difference in the trial balance
(i) Errors of Commission
(ii) Errors of Omission
(iii) Errors of Principle
(iv) Compensating Errors

Well just to find out the above mentioned errors does not prove the accuracy of accounting books, because there are several other errors which do not affect the trial balance and it is matched.

Examples of such errors are complex omission to record an entry in the books of original entry, wrong recording of transactions in the book of accounts; complete omission of posting to the wrong account on the correct side and errors of principle.