If the trial balance does not match, it might be due to a doubling error, transposition (like writing 78 instead of 87), or a slide error.
Doubling Error
A doubling error happens when a debit balance is mistakenly entered as a credit or vice versa. For example, if a $6,000 Sales credit balance is mistakenly entered in the debit column, total credits will be $6,000 too low, and total debits will be $6,000 too high, creating a $12,000 discrepancy, which is double the $6,000 error.
How to Identify a Doubling Error:
- Calculate the Difference: Subtract the total debits from the total credits or vice versa.
- Halve the Difference: Divide the difference by 2.
- Identify the Error Amount: Check for an account balance that matches this amount. For instance, if the difference is $12,000, dividing by 2 gives $6,000, indicating a $6,000 Sales account balance may be misentered.
Transposition Error
A transposition error happens when two figures are reversed (e.g., writing 78 instead of 87).
How to Identify a Transposition Error:
- Subtract Totals: Subtract one total from the other.
- Divide by 9: If the result can be divided evenly by 9, a transposition error is likely. Look for the reversed figures and correct them.
Slide Error
A slide error involves a decimal point or digit being incorrectly moved, such as writing 1,650 as 16,500 (extra zero added) or 165 (zero deleted). Another example is writing 2,036 as 236 (two zeros deleted) or 200,036 (two zeros added).
How to Identify a Slide Error:
- Unreasonable Balance Check: Look for balances that appear unusually high or low.
- For instance, an Asset-Auto balance of $1,000 might be too low, while an Office Supplies Expense balance of $15,000 could be too high. These could be due to slide errors.
Other Places to Find Errors
Even if debits equal credits, other errors might still exist:
- Unposted Amounts: Ensure all amounts are posted to the accounts.
- Wrong Account Entries: Check that amounts are posted to the correct accounts (e.g., a Phone Expense amount posted to Travel Expense).
- Wrong Amount Entries: Verify that all amounts are entered correctly (e.g., $1,000 entered as $10,000).
- Repeated Transactions: Look for the same transaction entered multiple times.
These steps will help identify and correct errors to ensure the trial balance is accurate.
