How can a balanced trial balance still have errors?

Trial balance errors
  • Entries Made Twice. If an entry is made twice, the trial balance will still be in balance, so that is not a good document for finding it. …
  • Entries Not Made at All. …
  • Entries to the Wrong Account. …
  • Reversed Entries. …
  • Transposed Numbers. …
  • Unbalanced Entries.

Why trial balance is not accurate?

No, Trial Balance is not a complete proof of arithmetical accuracy of account. A Trial Balance in which the credit and debit accounts match does not prove that, all transactions have been recorded in the proper accounts.

Why does my trial balance balance but not my balance sheet?

The key difference between Trial Balance vs Balance sheet is that Trial Balance is the report of accounting in which ending balances of different General ledger. The double-entry bookkeeping requires the balance sheet to ensure that the sum of its debit side is equal to the credit side total.

Does a trial balance show mistakes?

Trial balance errors are errors in the accounting process that cannot be detected by the trial balance sheet. … If the totals of debit and credit money columns of trial balance are the same it is presumed that the accounting process is accurate.

What errors will not be disclosed by a trial balance?

Errors not disclosed by the trial balance

The trial balance will tally. Errors of complete omission, error of principle, compensating error, wrong entry in the subsidiary books are not disclosed by the trial balance.