Errors Which a Trial Balance Fails to Disclose

>> July 23, 2010


There are many benefits of trial balance but there are also numerous errors which can not be disclosed or revealed from making trial balance. We are explaining all these errors one by one.
1. Errors of omission

If we forget to pass the journal entry of any transaction, both side of trial balance will not be affect with this. So, trial balance will be unsuccessful to disclose these errors. For example, we purchase the goods of Rs. 10,000 but forgot to enter it in journal.

2. Errors of commission

These types of errors are happened due to negligence of accountant and can not be found by making trial balance. Suppose, we sold of Rs. 10,000 goods but recorded in books as Rs. 100. Both account balances in trail balance will not be affected from this.

3. Errors of compensating

Suppose, accountant wrote Rs. 500 less in the debit side of purchase account and same time he also wrote Rs. 500 less in credit side of sale account. Because one mistake is compensated with other error. So, trial balance will not tell such mistakes.

4. Errors of principles

Errors of principles do not affect the trial balance because one side balance will agree with other side balance. Suppose if you have purchased machinery but you debited purchase account in journal entry. It is the mistake of principle but it can not be disclosed by making trial balance.

5. Errors of duplicating

If you pass the journal entry twice, it will not have an effect on the trial balance. So, it will also not be revealed by making trial balance.





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