A trial balance is used to check and correct errors that might occur in the preparation of books of accounts.
some errors are detected and others are not. Those detected once seen can be corrected. These are;
1. In cases where the principal of double entry is not observed. Accounts are supposed to be maintained following double entry policy. It requires that where there is a debit record, a corresponding credit record should be made. If this is not done, then the trial balnce will not balance.
2. Where there are wrong calculations on additions and subtractions by the individual preparing the books of accounts. Not until this is realized, the trial balance will not balance.
some errors are detected and others are not. Those detected once seen can be corrected. These are;
1. In cases where the principal of double entry is not observed. Accounts are supposed to be maintained following double entry policy. It requires that where there is a debit record, a corresponding credit record should be made. If this is not done, then the trial balnce will not balance.
2. Where there are wrong calculations on additions and subtractions by the individual preparing the books of accounts. Not until this is realized, the trial balance will not balance.