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If the two totals of a trial balance are equal, does it mean that there are no errors in the accounting records?

Question

If the two totals of a trial balance are equal, does it mean that there are no errors in the accounting records?

check_circleAnswer
Step 1

The Agreement of trial balance menas the arithematical accuracy of books. But is does not always means that our books are free from errors. There are various types of errors which may be there in the books even then the trial balance tallies. That means the trial balance is not able to detect such errors. The various types of errors which cannot be determined from Trial balance has been explained as under:

Step 2

1. Error of Principle: The Error of principle mainly occur when the book keeper has not taken care of Accouonting principles while passing the journal entries like revenue expenditure is booked as capital expenditure or capital expenditure is expensed as revenue expenditure. For example: Frieght inward paid on purchase of capital asset like machinery has been debited to Freight account instead of Debitedto machinery account is a error which cannot be detected through trial balance.

Step 3

2. Error of Complete Ommission: When some transaction is completely forgotton to be entered in the books, then such errors will not be detected from trial balance. For example, Credit ...

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