prepare a trail balance taken the from the books of Naveen as on December 2013 prepare a trail balance?
Answers
Explanation:
1. State the meaning of a Trial Balance.
Trial Balance is a list of all general ledgers accounts present in the ledger of a business, the main purpose of its creation is to verify the arithmetical accuracy of the accounts. It is carefully prepared after balancing of all the accounts of ledger. Trial Balance consists of two columns, debit side consists of all the debit balances and credit side contains all the credit balances of the accounts.
2. Give two examples of errors of commission.
Errors that are committed when transactions are recorded with wrong amounts, improper balancing, wrong posting or wrong carrying forwarding are called errors of commission. Here are two examples of such errors.
Goods purchased worth Rs 1,000 on credit are recorded in the Purchases Book as Rs 10,000.
This transaction should have been recorded in the Purchases Book with an amount of Rs 1,000; however, it was recorded as Rs 10,000. This is an error due to wrong recording of amount.
Total of Sales Book is carried forward as Rs 1,000 instead of Rs 100.
In this case, wrong amount is carried forward from one accounting period to another or from an end of one page to the beginning of another page. This is referred to as an error of carrying forward.