Errors which affect the agreement of the Trial Balance. Such errors are easy to be located since they are caught at an early stage. As soon as the Trial Balance does not tally, the accountant can proceed to find out these errors. The procedure to be followed for location of such errors can be put as follows:
- The difference of the two sides of the Trial Balance should be found out The amount should then be divided by two. The two sides of the Trial Balanc2 should then be checked to find out if there is an amount equal to that figure. It is possible that the amount may have been placed to a wrong side resulting in difference in the totals of the Trial Balance. For example, if the total of the debit side of the Trial Balance is Ps 450 more than the credit side of the Thal Balance, Rs 450 should be divided by 2, thus giving a figure of 225. The debit side should then be checked to find out if there is an amount of Rs 225 appearing on that side. If it is so, it should be seen whether the amount has been correctly put to that side or it should have gone to the credit side.
- Since, cash and bank account are not maintained usually in the Ledger, it will be also advisable to check whether the balances of the cash and bank accounts have been taken in the Trial Balance or not.
- The schedules of sundry debtors and sundry creditors should be checked to find qut whether all balances of debtors and creditors have been included in these schedules or not.
- The totals of the subsidiary books such as the Sales Book, Purchases Book should be checked and it should be seen whether posting has been done from these two books correctly to the Sales, Purchases or other accounts as the case might be.
- If the error is still not traceable, check thoroughly the books of original entry and their posting into the Ledger and finally the balancing of different accounts.