Trial Balance Error and Rectification

By | March 26, 2012

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“Hi, I am Anas from Qatar. currently I am facing two problem in my new company as follows.
1- Trial balance error and it shows opening balance difference. how can I intercept the particular opening balances. how can I solve if it is not the opening balance mistake.
2- In the bank statement of March 2011, it shows a credit amount (increase) in the bank a/c (return of letter of guarantee after maturity);  but the bank balance is Nil in the previous balance sheet. so what is the way to pass the transaction to increase bank balance in company ledger?

Yours Respectfully
Thanks & regards

Anas from Qatar

Anas! 1.  Trial balance error shows the mathematical problem. No problem, there is difference in opening balance or any other balance. For its rectification, you need to check your journal, ledger accounts figure and balance. If one account will less or more, it will not be balanced in trial balance. So, trial balance error can be adjusted by passing rectify journal entry.

2. Letter of guarantee shows your obligation payment of debt of customer if customer of bank does not pay. Because it is returned to you after maturity, it means customer has paid his debt. So, bank has increased your balance which was under guarantee. If you will not increase your balance, it will be your mistake. Just go to voucher entry and debit bank account and credit fund under guarantee account.

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