Discussion Topic

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?

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

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.