ACCT 102 Chapter Notes - Chapter 2.3: Trial Balance, Dollar Sign
Document Summary
Trial balance: proves that debits and credits balance, can also located errors in journaling. Or errors when posting: also useful in nancial statement prep. Steps for prepping the trial balance: 1. list account titles and their balances. Debit or credit column: 2. total credit and debits, 3. prove credit and debit equal. If they are the same number then things are equal. Limitations of a trial balance: doest not guarantee that there are no errors. Just because it balances doesn"t mean some error may have occurred: ex. Putting things in the wrong account, etc. Locating errors: if it doesn"t balance, then: If the error is , 10, 100, or 1000, reads and recompute. If the total is divisible by two: if something equal to half the error was entered in the wrong column. If the error is divisible by 9, retrace and see if things were entered wrong: transposition error.
