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Trial Balance Agreement means the debit side should match with credit side otherwise something is either missing or wrong information provided.
As we use double entry system in accounting so in every transection debit has equall amount of credit so if the debit side and credit side don't match it means some information is not provided or charged to any account which required to be charged.
For Example:
Purchase machinery of $10000 on cash
[debit] Machinery Account 10000
[credit] Cash 9000
now trial balance will not telly as debit side is more then credit side by $1000 and we can see that why it is so that.
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∙ 14y ago
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It is true that the trial balance totals should agree?
yes
Discuss the limitations of trial balance?
Limitations of a trial balanceTrial Balance only confirms that the total of all debit balances match the total of all credit balances. Trial balance totals may agree in spite of errors. An example would be an incorrect debit entry being offset by an equal credit entry. Likewise, a trial balance gives no proof that certain transactions have not been recorded at all because in such case, both debit and credit sides of a transaction would be omitted causing the trial balance totals to still agree. Types of accounting errors and their effect on trial balance are more fully discussed in the section on Suspense Accounts.
What is the difference between trial balance of totals and trial balance of balances?
firstily trial balance of total is the total balance of trial balance being show at the end of a year. trial balance of balance it is the balances being show doing the calcution of the trial balance.
How do you correct a compensating error?
if the effect of an error is cancelled by the effect of some other error,trial balance will agree.
What is the difference of trial balance of balances and trial balance of totals?
trial balance of balances is the trial balance with two columns while trial balance of totals is the one with four columns
It is true that the trial balance totals should agree?
yes
Could there be errors in journal entries when the trial balance agrees and if so under what circumstances?
Yes, there could be errors even when the trial balance agrees. For example, the columns in a trial balance would still agree if an entry was omitted or entered incorrectly in the same amounts in corresponding accounts.
Discuss the limitations of trial balance?
Limitations of a trial balanceTrial Balance only confirms that the total of all debit balances match the total of all credit balances. Trial balance totals may agree in spite of errors. An example would be an incorrect debit entry being offset by an equal credit entry. Likewise, a trial balance gives no proof that certain transactions have not been recorded at all because in such case, both debit and credit sides of a transaction would be omitted causing the trial balance totals to still agree. Types of accounting errors and their effect on trial balance are more fully discussed in the section on Suspense Accounts.
Conditions when closing stock not seen in trial balance.?
I think your question is wrong ..or you must have not solved tough questions in which closing stocks do appear in trial balance
Importance of trial balance?
importance of trial balance importance of trial balance
What is the difference between trial balance of totals and trial balance of balances?
firstily trial balance of total is the total balance of trial balance being show at the end of a year. trial balance of balance it is the balances being show doing the calcution of the trial balance.
How do you correct a compensating error?
if the effect of an error is cancelled by the effect of some other error,trial balance will agree.
What is the difference of trial balance of balances and trial balance of totals?
trial balance of balances is the trial balance with two columns while trial balance of totals is the one with four columns
What if Trial balance debits and credit equals?
If you do a Trial Balance and your Credits Equal your Debits, then more than likely your books are correct.In double entry accounting the debits and credits must balance or be equal.
Which account balance will change between the adjusted trial balance and the post closing trial balance?
The adjusted trial balance includes depreciation and other adjustments. This is the account balance that changes between the adjusted trial balance and the post closing trial balance.
What are the sources of trial balance?
Journal and Ledger are the main source of Trial Balance
What are the three trial balances in the accounting cycle?
The unadjusted trial balance, the adjusted trial balance, and the post adjusted trial balance.
