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Chapter 5: Balancing Off The Accounts and The Trial Balance - Coggle…
Chapter 5: Balancing Off The Accounts and The Trial Balance
Debit Balance
Expenses
Assets
Credit Balance
Liabilities
Capital
Income
Zero Balance
When the total debit of an account is equal to the total credit, the account will have a zero balance
Trial Balance
Objective
It helps to detect errors within a give time period
It helps facilitate the preparation of financial statements
It checks the arithmetical accuracy of the double entry rules used
Steps
Put the balance in the right column debit or credit
The amount in each of the column is then totalled
State the name of the business and the tittle
Errors in The Trial
Balance
Error in Addition
Posting to the Incorrect Side of an Account
Error of Transposition
Error in the Trial Balance
Single Entry
Error Not Affecting the Trial Balance Agreement
Error of Principle
Complete Reversal of Entries
Error of Commission
Compensation Errors
Error of Omission
Error of Original Entry