Trial Balance Assignment Help

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A trial balance is a collection of financial accounts in which the balances of these accounts are assembled into debit and credit column. It is prepared at the end of every reporting period by the company. Preparation of a trial balance for a company or organisation helps to detect the mathematical errors that might have occurred in the double-entry accounting system. When the total debits is equal to the total credits then the trial balance is said to be balanced, and hence there are no mathematical error in log. Errors may arise in a company’s accounting system due to some missing transaction information and cannot be detected by the trial balance method. On a trial balance register or worksheet, all the debit balances are placed on the left column and all the credit balances are place on the right column. The account title is placed to the far of the two columns. Financial reports, balance sheets and the trading profit and loss statement are produced using the financial accounts presented on the trial balance. Trial Balance Assignment Help Online Service provides us with a depth idea about trial balance method.

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Trial Balance- Its usage and limitations


The trial balance process was first described by Luca Pacioli in the 1494 work Particularis de Computis et Scripturis. The basic purpose of a trial balance is to show that the value of all the debit balances is equal to all the value of the credit balances. When the total of the debit column does not equal the total of the credit column then error is found. We must find this error before a profit and loss statement and then the balance sheet is produced.

The limitations explained in Trial Balance Assignment Help Online Service are:


• Error of original entry: – This type of error occurs when both sides of a transaction includes a wrong amount.
• Error of reversal: – This type of error occurs when correct amount is entered but in different column i.e. credits are entered in debits column and vice versa.
• Error of commission: – When correct amount is entered in the appropriate side (debit or credit) but one or more amount is entered to the wrong account of the correct type, then this type of error is found.
• Error of omission: – This type of error occurs when a transaction is completely removed from the accounting records. The complete list of errors can be seen from Trial Balance Assignment Help Online.
• Error of principle: – When correct amount is entered in the appropriate side (debit or credit) but the wrong type of account is used.
•Compensating errors: – These are multiple unrelated errors which individually cause imbalance, but together they cancel each other out.

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• Consists of all the details of financial accounts.
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