FAQ : Frequently Asked Questions
FAQ -01 What is Trial Balance
Trial Balance is a Statement showing net Balance (Net Debit or Net Credit) of all ledger accounts, as on a specified Date.
FAQ -02 Is Trial Balance a part of Books of Accounts
No, Journal, Cash Book etc, which record the Primary transactions (Vouchers) are Part of Books of Accounts. Ledger, which contain posting from these Books of Accounts & and net Balance, is also a part of Books of Accounts. Trial Balance is a Statement created for convenience to ensure arithmetic accuracy of the Balances of Ledger Accounts and to manually compile the P & L Statement and Balance Sheet easily.
You may even compile the P & L Statement and Balance Sheet from the Ledger Balance directly.
FAQ -03 Under what circumstances, the Trial Balance may not Tally. How you my detect and rectify the error?
Ans :In manual accounts, the Trial Balance may not tally due to errors in casting, posting etc. In Computerised system, these are done by the software (so the manual errors are eliminated). As each voucher contains equal Debit & Credit, the Trial balance must tally in Computerised system.
However, the Trial Balance will not Tally if the entry of Opening Balance in ledger accounts is not complete & correct. In that case the Balance Sheet and Trial Balance Statement shows a Difference in Opening Balance.
To check the correctness of Ledger Opening Balance entered :
- Period Setting : Click F2:Period and set the Period for Start and End of Financial Year
- Configuration Set Up : At Trial Balance Display Configuration (F-2B), :
- Set Yes at Show Opening Balance
- Set No at Show Transactions
- Set No at Show Opening Balance
FAQ -04 How the Account Groups & Ledger Accounts in Trial Balance is organized
Ans The Primary Major Groups (Reserved Groups) appear in the order of Liability, Assets, Income & Expenses. The Subgroups & Ledger appear in hierarchical order under the respective parent Group. So, the Trial Balance shows the Group / Ledger Accounts in structured manner with Sub-Totals & Grand Totals at each group level.
FAQ -05 What you get when you drill down through a Group in Trial Balance Display
Ans : You get Group Summary showing the Balances of next Level Groups / Ledger Accounts of the selected Group
FAQ -06 What you get when you drill down through a Ledger Account in Trial Balance Display
Ans : You get Ledger Monthly Summary showing the break up figures (monthly summary figures) for each month of the selected Ledger Account