Trial Balance and Rectification of Errors

If sales to Diwakar and sons were not posted to his account, ledger will show the following position : Ashok Traders Account Sales Balance c/d Bimal Service Centre’s Account Sales Balance c/d Chopra Enterprises Account Sales Balance c/d Sales Account Sundries , The trial balance when prepared on the basis of above balances will not tally. Its credit column total will amount to Rs. , and debit column total to Rs. , .

The trial balance would differ with Rs. , . This difference will be temporarily put to suspense account and trial balance will be made to agree in the ledger. In the above case, difference in trial balance has arisen due to one sided error (omission of posting to Diwakar and sons’s account).

In a real situation, there can be many other such one-sided errors which cause a difference in trial balance and thus result in opening of the suspense account. Till the all errors affecting agreement of trial balance are not located it is not possible to rectify them and tally the trial balance in such a situation, is shown in the Suspense account, make the total of debit and credit columns and proceed further with the accounting process. When the errors are located and the specific accounts and amounts involved