AOS1 KK3-The Trail Balance

Question 1

Trail Balance

Answer 1

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

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

Question 2

Errors Revealed

Answer 2

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

Question 3

Errors not revealed

Answer 3

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

Question 4

Footing Ledegers

Answer 4

Footing is an informal process used to determine the balance of a ledger account.