If the two totals of a trial balance are equal, does it mean that there are no errors in the accounting records? Explain.
The total of the trial balance is not a grantee, it does not contain any errors. If the accountant misses recording transitions, we will be able to find this mistake in trail balance. Let's say, A customer buys inventory for $500 on credit. The account was not able to record this transaction in the company records. If the account makes the trial balance for the company, it must be equal if there are no other mistakes in the company records. But still, $500 is missing on the company records, the equal of the trial balance does not mean it’s error-free.
Saturday, 13 November 2021
If the two totals of a trial balance are equal, does it mean that there are no errors in the accounting records? Explain.
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