Trial Balance and Rectification of Errors — Chapter Summary

A trial balance is a statement

A trial balance is a statement of the balances, or total of debits and credits, of all the accounts in the ledger to check the arithmetical accuracy o

The three objectives are to ascertain

The three objectives are to ascertain the arithmetical accuracy of ledger accounts, help in locating errors, and help in preparation of financial stat

There are three methods

There are three methods: Totals Method, Balances Method, and Totals-cum-Balances Method. The Balances Method is the most widely used, while the other

Assets

Assets, expenses and receivables accounts have debit balances. Liabilities, revenues and payables accounts have credit balances.

These are clerical errors caused by

These are clerical errors caused by wrong posting, wrong totalling, wrong balancing, wrong casting of subsidiary books, or wrong recording of amount i