Identifying Errors
Errors can occur when journalizing or posting transactions.
Preparing a trial balance is one of the primary ways to discover errors in a ledger. However, a trial balance only indicates whether the debits and credits are equal or not. If the two totals of the trial balance are not equal, it may be due to one or more of the errors below:
- Failure to record or post a transaction
- Recording the same incorrect amount for the debit and the credit parts of a transaction
- Recording the same transaction more than once
- Posting a part of a transaction correctly as a debit or credit, but for the incorrect account