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-   -   How to correct errors on trial balance (https://www.askmehelpdesk.com/showthread.php?t=376954)

  • Jul 18, 2009, 03:59 AM
    MizzCazzy
    How to correct errors on trial balance
    OK. So I've done an unadjusted trial balance, but when I totaled up my debit and credit balances. I was 50 dollars off. And the only thing that I could think that I messed up on was when I recorded the sales commission transaction that was paid with cash. I did it as a credit to the sales commissions and a debit to the cash. Was that correct? And if not how is it supposed to be done. If anyone can please help me I would be extremely grateful
  • Jul 18, 2009, 05:36 AM
    ROLCAM

    I am not privy in full as to what you are talking about.
    You are not correct about your
    Sales Commission Transaction.

    This is an EXPENSE.
    All expenses are DEBITS.

    Therfore it should have been:-

    DEBIT Sales Commission Account
    CREDIT Cash Account.
  • Jul 19, 2009, 01:00 AM
    morgaine300

    However... having an entry backwards won't put you out of balance. The math doesn't know that your entry is backwards, because the debits & credits were still equal. You could have used the wrong accounts or anything, but as long as that entry is equal (and everything posted right, added right, etc), you'll still balance.

    Not balancing is in the math somewhere, not in the accounts you used. That is, each entry must be equal. All entries must be posted, and posted for the correct dollar amount to the correct side. All the math within an account must be correct, i.e. balanced out right. All those balances must be copied to the trial balance correctly, and all of them listed. This is what it takes to get a trial balance that balances. Notice this does not include getting the correct account in the entry to begin with, only that it balances.

    (I always have to burst people's balloons by telling them that a balanced trial balance doesn't mean everything is correct, only that it balances mathematically.)

    You have to find the math error. Re-add the columns, check that you copied everything from the accounts correctly and that you didn't miss anything, re-balance each account. If all else fails, check your postings. Look for $25. Something on the wrong side will double itself. (If you had $25 on the wrong side, it would be $50 off.)

    We don't know where the error is other than seeing quite literally every bit of work you did. You'll have to find it... all we can do is give some hints.

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