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transactions might be corrupted which cause unbalance journal entries to be made,so you have to chick which transaction is corrupted and when we know that,, we delete the corrupted issue.
In regard of Automated Accounting, I AGREE WITH ALL THE ANSWERS FROM ALL.
But if the trial balance DR total will not match with CR total that means there are some wrong recording of Accounting transactions or it can also be the frauding case.
1. error in the recording process value.
2. Error registering the account name.
3. Deletion errors.
4. technical errors.
5. deportation errors to the ledger
Yes, Is it possible that total of Debit side of trail balance :
1. Miscalculating the ledger account totals.
2. Posting a journal entry incorrectly to the general ledger
3. Making an error in your journal entry
4. Conclusion
Yes it normally happens when you work on SAP and you have several different working locations and extracts the Trial balance of each location separately. (Not the Company as a whole)
For example if the expenses of one location is borne by another location. Then such location debits the suspense / control account in SAP system instead of expense. Until the suspense account is cleared by the other location individual trial balances will not match.
There are various other examples as well when there is single entry made into the system and the other entry is automatic for which a clearance has to be made. like in Sales.
For every debit, there should be a corresponding credit and vice versa. If this principle is not followed, Trial Balance will not tally.
Error of principle, error of omission or compensating errors will not affect a trial balance, provided there is a debit and a corresponding credit and vice versa.
Naturally both debit and credit side of trial balance should be equal. it may not be equal if any improper action are taken .After that corrective measure should be taken.
Naturally, if your books of account are accurate, both Debit and Credit sides remain equal. It only happens when there is some mistake of any nature, fraud or absence of a business segment. It is first indication of in-appropriate book-keeping and requires further work of investigation to find out the reason. Once reason found, corrective measures should be taken.
Thanks for you kind invitation; I do agree with the all answers.
