BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers. However, this does not mean that there are no errors in a company’s accounting system.

Detailed explanation-2: -Financial accounting theory The balance of the respective accounts is posted to the debit and credit sections. The aggregate of both sections should be equal, which verifies the mathematical accuracy of the recording. Therefore, the correct trial balance should always have equal totals.

Detailed explanation-3: -The two most common mistakes that affect the trial balance are one-sided entries and incorrect additions. Both of these errors leave an unbalanced ending amount, so they’re quickly noticeable in the trial balance.

Detailed explanation-4: -Be aware that a “balanced” trial balance is no guarantee of correctness. For example, failing to record a transaction, recording the same transaction twice, or posting an amount to the wrong account would produce a balanced (but incorrect) trial balance.