Errors that cause a mismatch in Trial Balance

 

Errors that cause a mismatch in Trial Balance

Both the sides of a trial balance must tally. But if that does not happen, it may be on account of the following reasons.

1. When only one leg of the transaction is posted: Suppose goods are purchased on credit. The Purchase account gets debited, but the Creditor's account was not credited.

2. Lack of accurate balancing: The Closing balances of the previous year have not been accurately balanced in the current year.

3. Amounts mismatched: Suppose the sales ledger has a credit balance of Rs 10000, but while posting it in the trial balance, Rs 1000 gets posted. As a result, there will be a mismatch of Rs 9000 in the trial balance.

4. Mismatch issue: Suppose that the prepaid rent is paid. Instead of debiting the prepaid rent account, the Vendor's account gets debited. This will cause a mismatch in the trial balance.

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