Question

What types of errors won't be detected by the trial balance?

Answer 1

The trial balance will not detect errors of omission, duplication, and principle.

Step-by-step explanation:

The trial balance is a statement that lists all the general ledger accounts and their balances to check if debits equal credits and to identify any errors in the recording of transactions. However, certain types of errors will not be detected by the trial balance:

1. Errors of Omission: These occur when a transaction is completely left out of the accounting records, resulting in an imbalance in the trial balance.
2. Errors of Duplication: These occur when a transaction is recorded twice, resulting in inflated balances for certain accounts and no correction in the trial balance.
3. Errors of Principle: These occur when a transaction is recorded using an incorrect principle, such as recording revenue as an expense or vice versa. These errors do not affect the trial balance as the debits and credits are still balanced.