Class 11 Accountancy - Chapter Trail Balance and Rectification of Errors NCERT Solutions | What are the steps taken by an accountan

Welcome to the NCERT Solutions for Class 11th Accountancy - Chapter Trail Balance and Rectification of Errors. This page offers a step-by-step solution to the specific question from Excercise ".$ex_no." , Question 5: what are the steps taken by an accountant to locat....
Question 5

What are the steps taken by an accountant to locate the errors in the trial balance?

Answer

Step1: Recheck the totals of both the debit and credit amount columns of the Trial balance.

Step2: The exact figure of difference in the Trial Balance should be ascertained. After this, the subsidiary books should be gone through to see if any item of that amount remains unposted

Step3: The difference should be halved to find out if some figure equal to half the difference has been posted on the wrong side of an account thereby making the difference double.

Step4: The difference in the Trial Balance should be divided by 9. If the difference is completely divisible, it can be a mistake of transportation of figures.

Step5: In case, the difference is in a round figure, say ₹1, ₹10, ₹100 etc. There will be a possibility of wrong totalling or wrong carry forwards of the totals of a subsidiary book or there will be an error in the balancing of an account.

Step6: Check with the help of the Ledger whether the balance of each and every account including the balances of Cash and Bank have been included in the Trial Balance on the correct side and with the correct amounts.

Step7: Check whether all the closing balances from the previous year’s Balance Sheet have been correctly carried forward and recorded in respective ledger accounts.

Step8: Check the figures which are not clearly written.

Step9: If the difference is of a very big amount, it is just possible that the balance of a certain Ledger account may not have been included in the Trial Balance.

Step10: If, in spite of all the above efforts, there is still a difference in the Trial Balance, a complete checking of the postings of all the entries will be necessary.

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