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

One-sided errors are the errors which when committed affect the agreement of the trial balance.

These errors affect only one account and anyone side i.e. debit or the credit side of the account.

Errors of partial omission, recording transactions with wrong amount, casting, posting of incorrect amount are examples of one-sided errors.

Two-sided errors do not affect the agreement of the trial balance.

Here, are a few examples which would not be revealed in a trial balance:

1. Purchases from Mr. Shah, completely omitted to be recorded in the purchase book.

2. Purchases made from Vijesh, recorded in Ritesh’s account who is another creditor.

3. Stationary purchased for office use recorded in the purchase book.