Thursday, April 1, 2010

No Inequality in Trial Balance

The following four types of errors will not cause an inequality in the trial balance of an account.
  1. Recording a transaction more than once
  2. Posting part of a specific transaction correctly as a debit or credit yet doing it in the wrong account.
  3. Failing to record a transaction or to post a transaction in the appropriate account
  4. Accidentally recording the exact same erroneous amount for both debit and credit parts of a transaction.
Additional Accounting Examples and Explanations:

Information on the Accounting Cycle
What is a Trial Balance?
Common Trial Balance Errors

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The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.