These are items that are kept permanently for use in the business. These items are retained as assets of the business. The assets’ account can remain open at the end of the period, and their balances would be transferred to the balance sheet as fixed assets. If an asset is purchased, its value increases, and …
Inspite of the errors that are possible in the trial balance, a trial balance can be used in the following thus: (a) it series as a proof of the arithmetical accuracy of entries in the ledger. (b) it serves as a means of providing analysis which are subjected to some adjustments, from which the final …
Under this topic, it is an account that is used to accommodate on a temporary basis, any error that will lead to the disagreement of the trial balance totals. To this end, if the debit side is greater than the credit side, then we shall open a suspense account and then after that post the …
You should re-check, the arithmetical calculations and that of castings in various accounts in the ledger account. (b) You should use the rule of even numbers or the rule of two (2). Under this method, you should divide the difference between the’ debit side and that of the credit side of the said trial balance …
FACTORS THAT MAY OR MAY NOT AFFECT THE TRIAL BALANCE AGREMENT- A very good number of errors in the books may or may not affect the agreement of the trial balance totals. The factors entail thus:- Where there is error of total omission. In this case, it may be that the vouchers that are relevant …
The factors that may affect the trail balance totals agreement are thus: Where the debit balances in the ledger account have been entered on the credit side of the trail balance and vice versa. Where Balances are omitted while extracting the list of debtors or creditors. Where figures are written incorrectly, For example, recording “5” as …