The trial balance is normally extracted to cheek on the mathematical
accuracy of ledger entries or postings. Thus, failure of the debit and credit columns of the trial
balance to agree is an indication of the occurrence of some clerical and computational
errors such as:
1. Transpositional Error: This is a type of error which occurs as a result
of wrong positioning of some of the
digits in a given figure. The amount N784
may be wrongly posted as N748,
thereby making one column of the
trial balance to be greater or smaller than the other by
N36(784-748). All transpositional
errors are divisible by 9.
2. Slide Error: A slide error occurs when the decimal points in a particular
figure is wrongly placed l8
N217.50 is wrongly posted as N21.75 . Then one side of the trials
balance will be wrongly stated by N195.75 (N217.50-2.75) . like transpositional errors, all slide errors are divisible by 9
3. Placement Errors
:This is a kind of error which occurs when a debit
balance is in ledger account is
transferred to the credit side of the
trial balance or vice versa.
4. Mathematical And Clerical Error: Such as (i) wrong computations in the book of original
entry or in the ledger and (ii) failure to
transfer a debit or credit balance
to the trial balance in
order to locate and of the foregoing errors in the books of account, the following procedures should be followed
a. all
arithmetical calculations in the book of
accounts should be carefully and meticulously cross checked.
b. Go through the ledger accounts and
ensure that, all the account balances were completely lifted to the trial
balance
c. Verify and ensure that all the
calculations in the books of prime entry were accurately done, and that all
postings to the ledger were in order.
d. Check and see if any debit balance
was entered in the trial balance as a credit
balance was entered in the trial balance as a credit balance
e. Obtain the difference between the
two sides of the trial balance, if the
difference is dividusable by 9 , then
look out for transposted or sided
figures. If however, the difference is
divisible by 2, then check
out to see if this new figure is
in the trial balance.
f. Finally, recast the two sides of the trial balance to
ensure it is properly added.