Trial Balance and Rectification of Errors

Topics

• Trial balance

  • Objectives and meaning
  • Preparation by the balance method

• Errors

  • Omission, commission, principle and compensating errors
  • Effect on the trial balance
  • Rectification with and without trial-balance effect
  • Suspense account

Learning objectives

1. Locate and rectify an error, using a suspense account where required.