CORRECTION OF ERRORS

FINANCIAL ACCOUNTING SSS1 SECOND TERM              

WEEK 10

CORRECTION OF ERRORS

Content

Errors made in the recording of the day-to-day transactions can be divided into those which are not revealed (disclosed) by the trial balance and those which result in the trial balance not balancing.

Where the trial balance total does not agree it is usual to apply the following quick checklist to locate the errors.

1. Check the additions to the trial balance.
2. Check the addition of the balance of each ledger account.
3. Check that each ledger account balance has been entered in the correct column of the trial balance.
4. Check that every ledger account balance has been entered in the trial balance.
5. Look for a transaction equal to the difference…