Page 190 - Office Practice and Accounting -9

Accounts that figure in trial balance

Debit (Assets, Losses and Expenses)

Bank Motor vans Furniture Debtors
Machinery Opening Stock Cash Premises
Goodwill Patent Trademarks Investment
Prepaid expenses Accrued income Bills receivable Copy right
Purchases Carriage in and out Wages and salaries Advertising
Rent and rates Printing and stationery Discount allowed Bad debts written off
Depreciation Lighting and heating Other expenses Insurance
Commission paid Interest paid Electricity charges Telephone charges
Traveling expenses Administrative expenses Drawing of cash Drawing of goods
Sales return, etc.

Credit (Capital, Income and Liabilities)
Capital Creditors Loans from others Outstanding exp.

Unearned income Bank overdraft Bills payable Account payable
Unearned income General reserve Sales Provisions
Commission received Rent received Discount received Bad debts recovered
Dividend received Provision for bad debts Purchase return Interest received
Provision for Depreciation, etc.

Accounting Errors

Total of debit and credit side of trial balance must be equal. If it is not equal, there
is error somewhere in the records. The mistake can be committed while recording
financial transactions into journals and posting in ledger which is known as accounting
errors. Such error is crept in books of account either due to the lack of knowledge of
accounting principles or owing to oversight. Generally there are two types of errors
from the point of view of trial balance which are discussed below:
1. Errors disclosed by trial balance
2. Errors not disclosed by trial balance

1. Errors disclosed by trial balance
These are the errors which can be detected by preparing trial balance. Trial balance
disagrees if the following errors occur:
i. If amount is omitted to post into ledger: If any amount of one side is not posted
from journal in to ledger, two sides of the trial balance will not be equal.

186 Office Practice and Accounting 9