If the totals of the two columns of the trial balance do not tally, the difference will be transferred to
Answers
If the totals of the two columns of the trial balance do not tally,the difference will be transferred to Balance sheet.
A general balance of the company has two aspects: assets, left and financing, which have two parts, liabilities and own assets in their own part.
The main asset categories usually appear first in the list and generally due to liquidity. Assets are followed by responsibility.
The difference between assets and liabilities is equal to the liabilities of the net equity or net assets or the net worth or capital of the company, as well as the accounting equations, the net equity must be equal to the less liability.
Trial balance is prepared to check and confirm the posting of all accounting entries. Trial balance is prepared with the help of ledger account. All the balances from each of ledger account is taken in a list in the debit and credit column. Both the sides of trial balance must be equal as accounting is based on the double entry system of accounting.
If the trial balance do not agree and errors not located before the finalization of accounts, the difference amount has to be transferred to suspense