only one amount has been written in the trial balance the list of such accounts should be checked and totaled again. List of Trade receivables is the example from which Trade receivable balance is derived.ii) It should be seen that the cash and bank balances have been written in the trial balance.iii) The exact difference in the trial balance should be established. The ledger should be gone through it is possible that a balance equal to the difference has been omitted from the trial balance. The difference should also be halved; it is possible that balance equal to half the difference has been written in the wrong column.iv) The ledger accounts should be balanced again.v) The casting of subsidiary books should be checked again
especially if the difference is `1
`100 etc.vi) If the difference is very big
the balance in various accounts should be compared with the corresponding accounts in the previous period. If the figures differ materially the cases should be seen; it is possible that an error has been committed. Suppose the sales account for the current year shows a balance of `32
53
000 whereas it was `36
45
000 last year; it is possible that there is an error in the Swales Account.vii) Postings of the amounts equal to the difference or half the difference should be checked. It is possible that an amount has been omitted to be posited or has been posted on the wrong side.viii) If there is still a difference in the trial balance
a complete checking will be necessary. The posting of all the entries including the opening entry should be check. It may be better to begin with the nominal accounts.Rectification of Errors:Errors should never be corrected by overwriting. If immediately after making an entry it is clear that an error has been committed
it may be corrected by neatly crossing out the wrong entry and making the correct entry. If however the errors are located after some time
the correction should be made by making another suitable entry
Errors of Principle (treating a revenue expense as capital expenditure or vice versa or the sale of a fixed asset as ordinary sale). Trial Balance will agree Clerical Errors Errors of omission Errors of Commission Compensating Errors Trial Balance will agree Omitting to post the ledger account from the subsidiary books. Trial Balance will not agree Omitting an entry completely from the subsidiary books. Trial Balance will agree Writing the wrong amount in the subsidiary books. Trial Balance will agree. Wrong casting of subsidiary books Posting the wrong amount in the ledger Posting an amount on the wrong side. Wrong balancing of an account
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