Here the steps which you can follow before Post Closing Trial Balance. Divide difference by two and find out if some figure equal to that (half the difference) appears in trial balance.
It is possible that such item might have been recorded on wrong side of mal balance, causing double the difference. If the mistake is not located, the difference should be divided by 9. If difference is evenly divisible by 9 the error be due to transportation of figures. For e.g. Rs. 590 wrongly recorded as 950, the difference is (950-590) 360 and it is evenly divisible by 9. Next step is to recheck debit and credit totals of trial balance to satisfy trial balance has been cast correctly. If mistake remains undetected, make sure that totals of all ledger accounts have been correctly shown in trial balance.
Take care while finding errors:
Special care should be taken to ensure that cash or bank balances have been duly incorporated in the mal balance. Next step should to recheck that all closing balances from preceding year’s balance sheet are correctly record in respective accounts. Further totaling and balancing of ledger accounts should be redone. So as to be sure that there is no mistake on that account. Check totals of schedule of debtors and creditors and find out that the balances have been included in the list. If difference is round sum, it is advisable to check casting and carry forwards. But if the difference is odd sum the balancing should be checked minutely. Check all the figures badly written. Even then if error is not located, all the accounts should be checked thoroughly as follows: Journal will have to be checked to ascertain that total debits and credits of each entry agree.
How to check subsidiary book?
Total of subsidiary books to be check to find that correct posting of the respective accounts has been done. Checking should done to ensure that discount column; total of cash book have been correctly post and enter. If all these efforts fail to locate errors full rechecking of additions, posting and balancing will have to be done. It would be advisable that work of re-checking is done by staff different from those who had done initial checking. There are number of accounts use in business to know the total loss and profit. It helps to know how much you are earning from your business. You need to be professional and expert in this and then you can make these accounts. If you are running a business then you can also hire accountant for your work. It is very necessary and useful to make account of your business.
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