Trial Balance

If Any amount showing negative figure on the credit side of the trial balance then what does it mean?

Questions by Prashanthair

Showing Answers 1 - 24 of 24 Answers

Santhosh Dasari

  • Jun 22nd, 2012
 

Trial balance is a statement containing the various ledger balances on a particular date.

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Satheesh

  • Jun 28th, 2012
 

If the amount showing as negative, then company is having insufficient funds.

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VIKAS KUMAR

  • Jul 16th, 2012
 

It shows excess pmt to vendor or some recovery due on vendor

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Sid1599

  • Jul 18th, 2012
 

Expenses are more than Income and there is a Net Loss in the Profit and Loss A/c.

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sivasankar reddy

  • Jul 30th, 2012
 

Trail balance is third accounting phase in accounting after preparation of ledgers which are to be transfer to tail balance it is prepared before trading and profit&loss account it contains clear debit and credit balance

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srinivas

  • Sep 11th, 2012
 

Trial Balance- It is a statement in which debit and credit balances of all the accounts of the ledger including
cash and bank balances (taken from cash book) are shown to test arithmetical accuracy of the books of the
accounts.

Objectives-
1. It ensures the arithmetical accuracy of the books.
2. It helps to prepare final accounts.
3. Some mistakes are detected by trial balance.
4. It is just summary of the contents of the ledger.

Errors disclosed by the Trial Balance
1. Partial omission of posting an amount in ledger.
2. Wrong totaling of subsidiary books.
3. Errors in extraction of Trial Balance.
4. Debit or credit entries are not entered at all.
5. Same entry enters twice.
6. Debits are entered as credits and vice-versa.
7. Errors in calculating the balance of an account.
8. Balance of an account entered wrongly in Trial Balance.
9. Difference in amount between the entries.

Errors not disclosed by the Trial Balance
1. Errors of omission
2. Compensating Error
3. Errors of principles entering both aspects of transaction twice in the books of accounts.
4. Errors in entering a transaction on the correct side of a wrong account (errors of misposting)
5. Entering wrong account bin the books of original entry (errors of commission).
Suspense Account- If two sides of Trial Balance do not agree, it implies that there are certain one-sided errors
in the books of account. If it is not possible to locate the errors, the amount of difference in Trial Balance is put
in the account known as Suspense Account. If debit side of Trial Balance exceeds the credit side the difference
in the Trial Balance is transferred to the credit side of the Trial Balance.

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sankesh

  • May 27th, 2013
 

It means that there is an error in nominal ledger accounts

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