An accounting clerk prepares his trial balance as of June 30, 20-and determines that total debits...

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Accounting

An accounting clerk prepares his trial balance as of June 30,20-and determines that total debits equal total credits. Hebreathes a sigh of relief and informs his boss that his ledger isin balance and that therefore the accounts are correct. His boss, achartered accountant, tells him that this is not necessarily thecase. She asks him to prepare a list of four possible errors thatcould occur and yet not cause the trial balance to be out ofbalance. Prepare this list as if you were the accounting clerk

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Answer The trial balance is the statement that reports all the debit and credit balances from the ledger accounts Trial balance shows the arithmetical accuracy of the ledger postings in the ledger However some entries result in the errors of equal amount in the debit and credit side of trial balance The accountant cannot identify these types of errors by just looking at the statement These errors cannot be detected by the accountant easily The list of trial balance errors can be See Answer

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