Agreement Of Trial Balance Is Not The Conclusive Proof Of The Accuracy Of Account

2. Error in the (s) book (s) of the original entry: The sample balance would not be affected, there is an entry in an erroneous book of the original entry or in the correct secondary book, but with an incorrect amount. The following error classes are not disclosed in the trial report: Examples: (a) An article of sales credits that were incorrectly recorded in the purchase book. The item has an incorrect charge and a corresponding bad credit. (b) A credit purchase for Rs. 115, which was incorrectly entered into the purchase book as Rs. 151. In this case, the purchase account and the supplier`s account are affected to the same extent. If a transaction is completely omitted, it will not affect the balance of the tests.

If a reservation is not fully accounted for in both aspects or if a booking after being recorded in the main post books is not recorded at all in the in-kind account, the error is an error of omission. If z.B. a credit purchase must no longer be included in the purchase book, it is no longer reserved to be booked both on the purchase account and on the supplier`s account. This error, however, will not lead to a disagreement over the balance of the test. In conclusion, we can say that a test balance should not be recorded as conclusive evidence of the accuracy of account management. 5. Compensation error: These errors, also known as self-compensation or balancing errors, have no influence on the matching of the trail balance, as errors on one side of the in-kind account are compensated by errors of the same amounts on the other side. It`s a one-sided summary of Ledger`s balances. and easy to see when you`re going to balance…

The balance of the tests is not absolute proof of the accuracy of the accounts in kind. This is only proof of the arithmetic accuracy of the posts. The sum of the charges may be the sum of the credits, but there can always be errors. 4. Error of principle: an element of the nominal account that enters a real account or vice versa. No, the trial balance is not a complete proof of the arithmetic accuracy of the account. A test balance in which credit and debt accounts are identical does not prove that all bookings were recorded on the correct accounts. For example, the wages paid for the installation of machines had been mistakenly recorded by debit from the payroll account from a distributor`s account, the test balance would still be agreed. ♥Trial Balance is not a complete proof of the arithmetic accuracy of the account. If the theory is not used as the basis for the practice of care, the alternative would be experimentation and error,… Book an item on a fake account, but on the right page. For example, if a purchase of Rs 200 was credited by Ramu Raman, instead of Ramu and this error has no influence on the Trial Balance agreement.