What kinds of errors would cause difference in the trial balance. Also list examples that would not be revealed by a trial balance?
(errors_causing_difference) One-sided errors cause difference in the trial balance. These include:
- Error in totalling of the debit and credit balances in the trial balance.
- Error in totalling of subsidiary books.
- Error in posting of the total of subsidiary books.
- Error in showing account balances in wrong column of the trial balance, or in the wrong amount.
- Omission in showing an account balance in the trial balance.
- Error in the calculation of a ledger account balance.
- Error while posting a journal entry: posting made either with wrong amount or on the wrong side of the account.
(errors_not_revealed) The trial balance may tally even when errors exist. Examples of errors not revealed by a trial balance are:
- Debiting a correct amount in the wrong account while making the journal entry or in posting. This causes two accounts to have incorrect balances but the trial balance would still tally.
- Recording an equal debit and credit of an incorrect amount. This gives two accounts incorrect balances but does not create unequal debits and credits.
Explanation
The question has two parts. The context clearly lists one-sided errors that cause trial balance differences. For errors not revealed, the textbook explicitly states that accounting accuracy is not ensured even if totals are equal, and gives two specific examples where errors exist but trial balance still tallies.
Solution Steps
Step 1: Identify one-sided errors from the context that affect trial balance equality.
Step 2: Identify from the context the specific errors mentioned that do not affect equality of debits and credits despite being errors.