Professional Documents
Culture Documents
I. The Account
- lists accounts and account numbers that identify location in the ledger
III. The Trial Balance
- list of accounts and balances at a given time, usually prepared at end of accounting period
- accounts listed in order they appear in ledger
- proves mathematical equality of debits and credits after posting
a. list account titles and balances in debit/credit columns
b. total debit/credit columns
c. prove equality of columns
A. Limitations of a Trial Balance
- not proof that it is 100% correct, just that the numbers are equal
B. Locating Errors
- if divisible by 2, see if a balance equal to half the error was entered in wrong column
- if divisible by 9, look for transposition error ($12 written instead of $21)
- see if error amount was omitted from trial balance
C. Use of Dollar Signs
- only used in trial balance and financial statements, not journals or ledgers
- only shown for first item in column, and for total of column
- single line = to be added or subtracted
- double line = final sums