Agreement Of Trial Balance Is Not A Proof Of Accuracy
The balance of the tests is not conclusive proof of the accuracy of the accountsYou explain this statement? ♥Trial Balance is not a complete proof of the arithmetic accuracy of the account. Clearing errors also occur when under-reservations on a page are compensated by overbooking on the same page. z.B. Amitabs account with 500 Rs. instead of 600 Rs; Sanjeev`s account was credited with Rs. 60 instead of Rs.100 and Nirmal`s account with Rs. 150 instead of Rs.110. Here, by far, the first error of Rs. 100 under-credit is covered by the second and third errors of the over-credit of Rs. 60 and Rs. 40 respectively. For almost all of us, it is very important to achieve a balance in life.
To keep your body healthy, strong… Book an item on a fake account, but on the right page. For example, if a purchase of Rs 200 was credited by Ramu Raman, instead of Ramu and this error has no influence on the Trial Balance agreement. Therefore, the balance trial will not recognize such an error. 2. Error in the (s) book (s) of the original entry: The sample balance would not be affected, there is an entry in an erroneous book of the original entry or in the correct secondary book, but with an incorrect amount. 4. Error of principle: an element of the nominal account that enters a real account or vice versa. In this case, the amount received or spent is wrongly recorded in an incorrect account class. For example, an amount of Rs.50 paid for furniture repair is debited to the furniture account and not to the repair account. It would be noticeable that such an error occurs.
Lack of knowledge of the accounting principle. The following error classes are not disclosed by the test balance sheet: This is a one-sided summary of account balances in kind. and easy to know when you`re going to make a balance… The trade balance relates only to goods or dense balances in apparent transactions. in brief… 5. Compensation error: these errors, even self-compensation or balancing errors, have no influence on the compliance of the trail balance, since errors on one side of the account in kind are compensated by errors of identical amounts on the other side The agreement between the two sides of the trail balances, although first facie test of arithmetic accuracy , is not conclusive or absolute evidence of the accuracy of entries in the original books and their reservations in the material account. In other words, the test review can be agreed without revealing some errors.
The following error classes are not disclosed by the test balance: If an Rs 632 invoice is entered in the sales book as Rs 623, the balance of the test will be properly released since the charge and balance were recorded as Rs 623. The arithmetic precision is present, but in fact, there is an error. The balance of the tests is not absolute proof of the accuracy of the accounts in kind. This is only proof of the arithmetic accuracy of the posts. The sum of the charges may be the sum of the credits, but there can always be errors. If a transaction is completely omitted, it will not affect the balance of the tests. If a reservation is not fully accounted for in both aspects or if a booking after being recorded in the main post books is not recorded at all in the in-kind account, the error is an error of omission. If z.B. a credit purchase must no longer be included in the purchase book, it is no longer reserved to be booked both on the purchase account and on the supplier`s account.