Trial Balance and Rectification of Errors

ensures that all debits and the corresponding credits have been properly recorded in the ledger. When a trial balance does not tally (that is, the totals of debit and credit columns are not equal), we know that at least one error has occured. The error (or errors) may have occured at one of those stages in the accounting process: ( ) totalling of subsidiary books, ( ) posting of journal entries in the ledger, ( ) calculating account balances, ( ) carrying account balances to the trial balance, and ( ) totalling the trial balance columns. It may be noted that the accounting accuracy is not ensured even if the totals of debit and credit balances are equal because some errors do not affect equality of debits and credits.

For example, the book-keeper may debit a correct amount in the wrong account while making the journal entry or in posting a journal entry to the ledger. This error would cause two accounts to have incorrect balances but the trial balance would tally. Another error is to record an equal debit and credit of an incorrect amount. This error would give the two accounts incorrect balances but would not create unequal debits and credits.

As a result, the fact that the trial balance has tallied does not imply