How To Match Trial Balance With Balance Sheet

 

A Trial Balance should match or agree with Balance Sheet otherwise, the total of debit accounts and credit accounts in trail balance is not equalized. Also, the assets side and liabilities side in balance sheet are not balanced and hence as a result, the financial statements did not show true and fair view of financial information.

To match the trail balance with balance sheet, there may be errors, mistakes and frauds due to which these are not agreed in monetary value, which must be corrected.

There may be possible reasons, errors or mistakes (mentioned below) due to which not only the debit amounts and credit amounts of trail balance are not agreed but also a trial balance is not agreed with balance sheet.

 

(i) Errors Causing Agreement of Trial Balance

(ii) Errors Causing Disagreement of Trial Balance

(iii) For uncertainty or if the accountant is unclear about a particular account or when the trial balance is not agreed due to certain errors, mistakes or frauds, there is a need to prepare a Suspense Account (Temporary Account) At The Time In Order To Balance Debit And Credit Sides of Trial Balance

(iv) There may be errors or mistakes in Balance Sheet, so Revised Balance Sheet is prepared to solve the problem

These errors must be solved in order to match trial balance with balance sheet.

For errors causing disagreement of trial balance, it is recommended to record rectifying entries and to prepare revised books of affected accounts while for errors causing agreement of trial balance, it is recommended to prepare revised books of all of the accounts alongwith rectifying entries in order to correct the wrong information.

So, by preparing revised Books of Accounts, rectifying entries, preparing suspense account and preparing revised balance sheet helps us in matching trial balance with balance sheet.