What steps would you take to locate the errors in case Trial Balance disagrees?
In case Trial Balance disagrees, following steps should be taken to locate the errors:
- Totalling of all the subsidiary books and trial balance should be checked carefully.
- Opening balances of all the accounts are properly brought down in the current year’s books of account.
- Ledger accounts have been properly balanced and the balances of ledger accounts have been correctly shown in the trial balance.
- To locate some errors the difference in the trial balance in halved.
- Another way is dividing the difference in the trial balance by 9.
- If the difference gets divisible without leaving any reminder that indicates the transposition of the amounts.
- To locate certain other errors, current year trial balance can be compared with the trial balance of the previous year.
What is cost centre?
Cost centre is defined as a location, machine, person, department, division, or any equipment or group…