The Trial Balance

Question 1

What is the trial balance?

Answer 1

A summary of the ledger accounts consisting of every account’s closing balance

Question 2

How does the trial balance help with the preparation of the financial statements?

Answer 2

It summarises the numbers worked out in the ledgers and presents them in an easier to read and use way.

Question 3

How does the trial balance check for arithmetical accuracy?

Answer 3

The total debits and credits should be equal, if not then an arithmetical error has occurred

Question 4

Errors detected by the trial balance (TAPUP)

Answer 4

. Transposition
. Addition (casting)
. Posting
. Unequal posting
. Partial omission

Question 5

Errors detected by the trial balance (TAPUP)

Answer 5

. Transposition
. Addition (casting)
. Posting
. Unequal posting
. Partial omission

Question 6

Errors not detected by the trial balance (ROCCOP)

Answer 6

. Reversal
. Omission
. Commission
. Compensating
. Original entry
. Principle