9706 · 1.4.2
Trial balance — FAQ
Frequently asked questions for 9706 Trial balance. Direct answers first, then deeper explanation — then practise with marking.
If my trial balance balances, does it mean my accounts are 100% correct?
Not necessarily. A balanced trial balance only confirms the arithmetical equality of debits and credits. It does not detect errors where the double-entry rule was followed but applied incorrectly, such as errors of principle, commission, omission, or original entry. The accounts could still contain significant mistakes.
Why is the suspense account difference often divisible by 9?
This is a classic sign of a transposition error, where two digits in a number are swapped (e.g., $45 is written as $54). The mathematical difference between the original number and the transposed number is always a multiple of 9 (e.g., 54 - 45 = 9). This property is a useful clue for accountants when searching for errors.
Do I need a suspense account to correct an error of principle?
No. An error of principle involves debiting or crediting the wrong class of account (e.g., debiting motor expenses instead of motor vehicles). A debit and a credit of equal value were still posted, so the trial balance would have balanced. The correction is made with a journal entry that debits the correct account and credits the incorrect account, without involving the suspense account.
What is the difference between an error of commission and an error of principle?
An error of commission is posting to the wrong account but of the correct type. For example, a sale to John Smith is posted to Jane Smith's account; both are trade receivable accounts. An error of principle is posting to the wrong type of account entirely. For example, buying a computer (asset) and posting it to office expenses (expense).