Trial Balance and Rectification of Errors

to transposition of figures. For example, if a debit amount of Rs. is posted as Rs. , the debit total in the trial balance will exceed the credit side by Rs.

(i.e. – = ). This difference is divisible by . A mistake due to wrong placement of the decimal point may also be checked by this method.

Thus, a difference in trial balance divisible by helps in checking the errors for a transposed mistake. From the point of view of rectification, the errors may be classified into the (a) errors which do not affect the trial balance. errors which affect the trial balance. This distinction is relevant because the errors which do not affect the trial balance usually take place in two accounts in such a manner that it can be easily rectified through a journal entry whereas the errors which affect the trial balance usually affect one account and a journal entry is not possible for rectification unless a suspense account has been opened.

Such errors are rectified by passing a nullifying entry in the respective account as explained before under . . . .

. Rectification of Errors which do not Affect the Trial Balance These errors are committed in two or more accounts. Such errors are also known