AOS1 KK3-The Trail Balance Flashcards

1
Q

Trail Balance

A

Trail Balance: A list of all the accounts in the General Ledger, and their balances, to determine if total debits equal credits.

Purpose: To determine debits = credits to ensure accuracy and correct errors if detected.

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2
Q

Errors Revealed

A

If the Trial Balance does not balance, then errors in entering transactions into the ledger account have been made including:

  1. Two entries made on the same side
  2. Only one entry made
  3. Different amounts have been recorded
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3
Q

Errors not revealed

A

Some errors will not be detected:

  1. A transaction has been omitted
  2. Debit and credit reversed
  3. Transaction recorded in the wrong ledger 4. Incorrect amount recorded in both ledgers
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