Register now or log in to join your professional community.
The General Ledger otherwise known as the Nominal Ledger consists up of the real accounts and nominal accounts necessary for the preparation of an account of an organization. In most instances, the summaries extracted from the cashbooks and other books being posted into the general Ledger do not balance do to one error or another. This may be recognized when preparing a trial balance. It is important to trace the point at which this error(s) occur to correct it.
When you are preparing a trial balance, you may find that you have an unbalanced trial balance. This means that you have an error somewhere in the accounting process. Finding and correcting that error is where accountants and bookkeepers earn their stripes
this is only possible if entries have been made wrongly that too cannot be matched with outside records exampls supplier statement and payable GL will match normally may be errors within
There is no chance for Imbalance or refuses to balance in our general ledger. Because every financial transaction affects both a debit account and a credit account, the sum of the total general ledger debits and credits should always be equal
There is no way that your general ledger is out of balance. Remember, accounting journal entry is a two- sided entry, which is the debit and credit. Unless you are reconciling the general ledger to the sub-ledger is a different story.
We have to run the GL for account analysis and have all necessary documents pertaining to all the entries for us to identify adjustment/s to be made.
We have to check all the postings from the journals to ensure there was no error
WE have to go back to the Journal entries where the debit and credit must be tally. and see to it all accounts entered is correct.
Analyzed the unusual accounts thoroughly.
Recheck the totals of all Special Purpose Books.
Does Yr. question means what meadures to be taken when the Trial Balance Does not agree ?
If so then following is the answer.
(i) Check the columnar totals of Trial Balance
(ii) Check that the balances of all accounts of GL (including cash and bank
balances) have been written and are written in the correct
column of trial balance i.e. debit balance in the debit side and credit
balance in the credit side.
(iii) Find the exact figure of difference with trial balance and see that:
(a) No account of a similar balance has been omitted to be shown
in the Trial Balance or
(b) An amount which is just half of the amount of difference
amount but is written on the wrong side of the trial Balance.
(iv) Recheck the totals of all Special Purpose Books.
(v) Check the balancing figure of the various accounts in the ledger.
(vi) If difference is still not traced, check each and every posting from the
Journal and various Special Purpose Books, one by one in the ledger.
