List The Steps To Search For An Error When The Trial Balance Does Not Balance
A Trial Balance (TB) should be agreed otherwise, there are one or more errors which must be solved by applying important steps which are mentioned below: 1. Check the arithmetic accuracy of ledger’s balances in debit and credit columns of Trial Balance such as checking the sum of debit and credit columns, checking whether the correct amounts of different ledger’ account balances are transferred or not, etc. 2. Examine the debit and credit balances of different accounts and see whether these balances either debit or credit are entered in the right columns of trial balance i.e., debit balance should be recorded in the debit column and credit balance of account should be enter in the credit column. 3. Examine that the correct amounts are transferred from the journal entries. 4. Recalculate the balances of all account again i.e., in case of debit balance, totaled the sum of debit side and then deduct any credit amount from such sum value to calculate debit balance again. 5. Verify ...