Following are the common errors in accounting:

☛ Errors of Omission

☛ Errors of Commission

☛ Errors of Principle

☛ Compensating Error

To locate the errors in the trial balance follow the below steps:

☛ Check the total of all the subsidiary books, cash book and trial balance.

☛ Ensure that all the opening balances have been correctly brought forward in the current year’s books of account.

☛ Ensure that all the ledger accounts have been properly balanced and the balances of all the ledger accounts have been reflected in the Trial Balance.

☛ The difference in trial balance should be halved to locate such errors.

☛ If the difference in the trial balance is divisible by 9 without any reminder, it may indicate the transposition or transplacement of the amounts.

☛ The trial balance of the current year can be compared with the trial balance of the previous year to locate certain highlighting error.