Chapter 7.2 – Trial Balance out of Balance

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Presentation transcript:

Chapter 7.2 – Trial Balance out of Balance When a trial balance does not balance, it will be your job as an accounting clerk to find and ______________. Finding errors is a _______ that you will need as an ______________!

Finding a Single Error Step 1 – on the trial balance, ________ ____________ between the Debit Column and the Credit Column. Step 2 – Try each of the __________to find your error. (Next 4 slides) Step 3 – If that doesn’t work, then follow the _____________________________: Re-add trial Check that the values were transferred correctly from the ledger Re-add the ledger Check that the balances were transferred from the journal accurately. Ensure each journal entry balances – Debits = Credits

Quick Tests – 1. _________________ If the trial balance difference is a multiple of 10 (such as 10 cents, $1 and $10) usually means that there is an ___________________ Re-add the trial balance columns If that does not work, re-calculate the balance of each account.

Quick Tests – 2. _______________________ Check both the ledger and the journal to see if the trial balance difference is equal to an amount ____________________ ________________________ Whenever you find such an amount, verify it to make sure that it has been handled correctly.

Quick Tests – 3. __________________ _______the trial balance difference by 2. Search the trial balance and the ledger accounts for this divided amount. If the equivalent amount is found, check it carefully that it has been ________________________ ___________.

Quick Tests – 4. ________________ If the trial balance difference is a multiple of 9 – it is likely that there is a ____________________. Transposition Error – is a mistake caused by _______________________ when transferring figures from one place to another. Example $35.60 is posted as $36.50