BMGT 220 Chapter Notes - Chapter 2: Trial Balance, Divisor
16 Sep 2016
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Trial Balance
Rules
1. List company name, title of trial balance, and date.
2. List ledger accounts and their debit or credit balance in the Debit/Credit column of
the trial balance
3. Total Debit + Credit columns
4. Verify that Debit Total = Credit Total
Errors Affecting the Trial Balance
If the difference between the debit and credit column is…
1. 10, 100, or 1000, it is an error in the addition of the trial balance columns
2. Divisible by 2, divide the difference by 2 and find that number in the account
balance. If it was in the debit column, move it to credit and vice versa.
3. Divisible by 9, go back to the ledger because it was copied down incorrectly.
•Transposition: order of the numbers is incorrect (Ex. writing $471 as $714,
$417)
•Slide: the number is recorded incorrectly a few spaces to the right or left (Ex.
writing $471 as $47.10 or $4710.00)
4. Not evenly divisible by 2 or 9, review the ledger and account postings to see if
something was left out.
Errors NOT Affecting the Trial Balance
1. Credit balance in a debit account
2. Debit balance in a credit account
Correcting journal entry: prepared when an error has been posted and journalized
already
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