1. Review POSTING Refer to link:

2. Learning Goal:
To be able to use the steps in order to identify where an error may have occurred to cause the trial balance to not balance.

3. Is your Trial balance out of balance?

5. One or more error has been made in the journal, ledger, or trial balance.
Some errors are difficult to spot, and can only be found by a persistent and expertly conducted search!

6. First Check: Re-add the trial balance columns
Check ledger against trial balance (debit & credit)
Re-calculate the ledger t-accounts
Check journal to ledger accounts (posting)

7. Shortcuts:
If only one error has been made, it can often be located quickly by means of a few short tests:

8. Shortcuts (cont.) Write down the trial balance difference
If the difference is even $1, $10, $100. Re-add the trial balance & ledger (addition error)
Look for an entry equal to the difference (entry missed or posted twice)

9. Does the difference divide equally by 9. (transposition error: eg
Is the difference an even amount? If yes, divide by two & search the records for this amount (posting the wrong side of account in ledger or trial balance)

10. If you have yet to find the error, PANIC!

11. Homework: Complete any outstanding work for yesterday week:
Exercise #2 & 3 p. 234(t), p (w)
For Ex. 2 – C. Fries and use page (w) for Income Statement & balance sheet
If you finish everything complete Ex. 3 p (t), p (w) & Ex. 2 p. 257 (t), p. 187 (w)
Start Ex. #6 – Royal City Engineering p (t), p (w) –Due Fri Oct. 27

12. Announcement
TEST Thursday Oct 26