Trial Balance

• Debit entries

  Expenses

  • bills
  • rental
  • sales returns
  • purchases

  Assets

  • vehicles
  • bank balance
  • inventories
  • receivables
  • Input sales tax / prepayments

  Drawings
• Credit entires

  Liabilities

  • Loans
  • payables
  • output sales tax
  • bank overdraft

  Income

  • Sales
  • purchase returns
  • interest received
  • discounts received / accruals

  Capital investments
• Error affecting TB

  Partial omission - one side on entry is posted

  Posting - incorrect value posted to accounts
• Errors not affecting TB

  Commission - posted to wrong account of same ‘type’ with correct value ie both to assets

  Principle - posted to account of different ‘type‘ ie assets or purchased

  Omission - left out

  Reversal entry - posted to wrong side of accounts

  Transposition - consecutive number reversed in error

  Original entry - posted with incorrect amount Both sides posted to wrong account
• Suspense accounts

  Temporary in general ledger

  If uncertain what account to record a transaction , part entry is put into suspense acc to investigate
• Correcting errors in Tb

  Correct double entry

  identify actual double entry

  determine entry to correct and make adjustments