Steps to locate errors
Errors can be located by going through various steps. Such steps are as follows:
Errors may be located before preparing the trial balance either spontaneously or by intentional scrutiny of books of accounts.
The following are the steps to be followed to locate errors before preparing trial balance:
The errors located at this stage are rectified by debiting or crediting the relevant accounts in the books.
While preparing trial balance, if it does not tally, it is an indication of presence of errors in the books of accounts. The difference in trial balance is transferred to suspense account and then errors are to be located and rectified.
The following are the steps to be followed to locate errors after preparing trial balance: