4: The trial balance

Question 1

The primary purpose of a trial balance is ________________

Answer 1

To test the accuracy of the double entry bookkeeping records.

Question 2

What is a transposition error?

Answer 2

When you swap the numbers around by mistake.

For example, you purchase a car for £4,500. You credited bank 4,500 and you debited assets 5400. This would be a transposition error.