Quick Tests for Detecting Error: Trial Balance Edition

There are four quick tests that might reveal a single error. Make sure before you do anything, calculate the difference between the debit and credit totals.

1. If the trial balance difference is a multiple of 10, then an error n addition has likely been made. Re-add the trial balance columns. If this does not work, recalculate the balance for each account.
2. Check both the ledger and the journal to see if the trial balance difference is equal to an amount entered in the ledger or the journal. Whenever you find such an amount, verify it to make sure that it has been handled correctly.
3.Divide the trial balance by two. Search (1) the trial balance and (2) the ledger accounts for this divided amount. This usually occurs when you have misplaced an amount on the wrong side. (Debit or Credit)
4. If the trial balance difference is a multiple of 9, it is likely that a transposition error or a decimal point error has occurred. Transposition error is a mistake caused by changing the order of digits when transferring figure from one place to another. Decimal point error is a mistake caused by misplacing the decimal point.

If these quick tests does not work to help you find the mistake, it is highly possible that you created multiple mistakes. Go back and double check all accounts and amount inputted.

Posting!

Each individual amount entered in the journal, must perform 6 steps. Five of on the ledger and one on the journal.
First Five Steps: Ledger
Step 1: Record the date. (Super Important) Use next unused line on in the account.
Step 2: Record the page number of the journal in the posting reference (Labelled P.R) column of the account. Write the letter J (Indicates Journal) in front of this number.
Step 3: Record the amount. Debit amounts are entered in the debit columns of the accounts. Credit amounts are entered in the credit columns oft the accounts.
Step 4: Calculate the new balance. Indicate whether this balance is debit or credit in the Dr/Cr column.
Step 5: Enter the new account balance you calculated in Step 4 in the balance column.
Last Step:  Journal
Step 6: Record the number of the ledger account that received the posting. Enter this account number in the posting reference (P.R.) column on the same line as the amount posted.

The process of transferring information from journal to the ledger is posting. This six step procedure helps the recording be more organized and clear.