The trial balance ensures that the debits equal the credits. It is
important to note that just because the trial balance balances, does not
mean that the accounts are correct or that mistakes did not occur.
There might have been transactions missed or items entered in the wrong
account –for example increasing the wrong asset account when a purchase
is made or the wrong expense account when a payment is made. Another
potential error is that a transaction was entered twice.
Why it is said that same amount in Debit and Credit side in Trial balance does n't ensure the mathematical accuracy of financial transactions?
by Maisha Mariam Meem -
Number of replies: 0