Whenever a trial balance does not agree, the following steps can be taken to discover the errors:
(1) Divide the difference by two and find out if any figure equal to that (half the difference) appears on the trial balance. It is possible that said item was registered on the wrong side of the bad balance, causing double the difference.
(2) If the error is not located, the difference should be divided by 9, and if the difference is divisible by 9, the error is due to figure transport, for example, 590 rupees incorrectly recorded as 950, the difference is (950- 590 ) 360 and is divisible by 9.
(3) The next step is to double check the debit and credit totals of the trial balance to ensure that the trial balance was issued correctly.
(4) If the error is not detected, please ensure that the balances or totals of all general ledger accounts have been displayed correctly in the trial balance. Special care must be taken to ensure that cash or bank balances have been properly incorporated into the uncollectible balance.
(5) The next step should be to re-verify that all closing balances from the previous year’s balance sheet were correctly carried forward and posted to the respective accounts in the general ledger.
(6) In addition, general ledger accounts should be re-totaled and adjusted to ensure that there are no errors in that account.
(7) Check the list totals of debtors and creditors and find out that the balances have been included in the list.
(8) If the difference is a round sum, it is recommended to check the conversion and carryover. But if the difference is an odd sum, the balance must be carefully checked.
(9) Check all the misspelled figures.
(10) Even then, if the error is not found, all accounts should be thoroughly checked as follows:
(11) The journal should be checked to ensure that the total debits and credits of each entry agree.
(12) Total of subsidiary books, that is, sales book, purchase book to be verified to verify that the correct accounting of the respective accounts has been made.
(13) A check must be made to ensure that the discount column; the cash book total has been correctly posted and entered into the trial balance.
(14) If all these efforts fail to locate errors, a complete recheck of additions, posting, and balancing should be performed, and it would be advisable for the recheck work to be performed by a different person than the one who had performed the recheck. revision. initial check.