Even if the trail balance agrees,some errors may remain.Do you agree? Explain
Answers
A trial balance is a list of the closing balances of all the ledger accounts and usually the first step in the preparation of final accounts. A trial balance may be a test of mathematical accuracy when the debit side equals the credit side. However, it does not necessarily mean that the ledgers are made with accounting accuracy. Thus a trial balance may agree when the debit side equals the credit side even if there are some errors. There can be following types of errors:
A trial balance is a list of the closing balances of all the ledger accounts and usually the first step in the preparation of final accounts. A trial balance may be a test of mathematical accuracy when the debit side equals the credit side. However, it does not necessarily mean that the ledgers are made with accounting accuracy. Thus a trial balance may agree when the debit side equals the credit side even if there are some errors. There can be following types of errors:Error of principle:
Answer:
Yes, I agree even if the trail balance agrees,some errors may remain.
If the totals of debit and credit money columns of trial balance are the same it is presumed that the accounting process is accurate.
But the agreement of both debit and credit money columns of the trial balance does not necessarily prove that there is no error in the accounting process.
Because there might have some undetected errors despite the agreement of trial balances.