Limitations of Trial Balance

• Trial Balance


  A list of all the balances in the ledger accounts at a particular date
• Errors that may occur after the total of the trial balance are the same


  • Error of Omission - no entry
  • Error of Commission - wrong name
  • Error of Original Entry - wrong amount/account
  • Error of Principle - wrong type of account
  • Compensating Errors - when two errors cancel out each other
  • Error of Complete Reversal of Entries