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 Md. Rabby Hossain Khan -
Number of replies: 0

Trial balance is not conclusive proof of the accuracy of accounts as the trial balance might tally in cases where there are compensating errors. For example, if you transposed numbers while posting from the general journal to the general ledger, or from the ledger to the trial balance sheet, this could cause the trial balance to not equal out. Also, if you made a math error, this can cause a problem too.

Hence, it does not justify that the same amount in the Debit and Credit side in the Trial balance doesn't ensure the mathematical accuracy of financial transactions.