Question
Asked Mar 7, 2019
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I just finished entering entries into the journal ledger byway of Quickbooks. However, my Journal is off by $1.80, the Trial Balance is off by $.90, and the Balance Sheet is off by $.90. The Profit & Loss Statement is correct.

I don't know where to start looking for the error.

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Expert Answer

Step 1

Financial accounting refers to the process of recording, summarizing, and reporting all the financial transactions of the business, over a period of time, in the financial statements. The financial statement consists of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

Step 2

Journal is the book where the original entries are made. Journal consists of the day-to-day financial transactions are recorded in a chronological order. The journal has two aspects; the debit aspect and the credit aspect respectively.

 

Trial balance is the summary of accounts, with their debit and credit balances at a given time.  It is usually prepared at end of the accounting period.  Debit balances are listed in left column and credit balances are listed in right column.  The totals of debit and credit column must be equal.  Trial balance is useful in the preparation of the financial statements.

 

Balance sheet reports a company’s resources (assets) and claims of creditors (liabilities) along with the stockholders (stockholders’ equity) over those resources. The main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

Step 3

An error refers to the mistake committed in the process of book-keeping or in accounting. Generally the error ...

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