How do you review a trial balance?
Regarding this, how is a trial balance used to discover errors?
An unadjusted trial balance is prepared to check the accuracy of information posted in the general ledger. The suspense account is the main method used to detect errors that cause discrepancies between the debit and credit balances of the trial balance.
One may also ask, what are the errors in trial balance?
Trial balance errors are errors in the accounting process that cannot be detected by the trial balance sheet. 2 types of limitations of trial balance are clerical errors, and errors of principles. Clerical errors are made by a human. Errors of principle happen when an accounting principle is not applied.
The first general rule of accounting is that every transaction is recorded. The second general rule of accounting is that transactions are recorded using what is called a "double-entry" accounting method.