Location of errors through Trial BalanceWhenever a
trial balance disagrees the following steps can be taken to discover the errors:
(i) Divide the difference by two
and find out if some figure equal to that (half the difference) appears in the
trial balance. It is possible that such item might have been recorded on the
wrong side of mal balance, causing double the difference.
(ii) If the mistake is not located,
the difference should be divided by 9 and if difference is evenly divisible by 9
the error be due to transportation of figures, e.g. Rs. 590 wrongly recorded as
950, the difference is (950-590) 360 and it is evenly divisible by 9.
(iii) The next step is to recheck
the debit and credit totals of trial balance to satisfy that trial balance has
been cast correctly.
(iv) If mistake remains undetected,
make sure that balances or totals of all the ledger accounts have been correctly
shown in the trial balance. Special care should be taken to ensure that cash or
bank balances have been duly incorporated in the mal balance.
(v) The next step should be to
recheck that all the closing balances from preceding year's balance sheet were
correctly carried forward and recorded in respective accounts in the ledger.
(vi) Further the totaling and
balancing of the ledger accounts should be redone so as to be sure that there is
no mistake on that account.
(vii) Check the totals of schedule
of debtors and creditors and find out that the balances have been included in
the list.
(viii) If difference is round sum,
it is advisable to check casting and carry forwards. But if the difference is
odd sum the balancing should be checked minutely.
(ix) Check all the figures badly written. (x) Even then if error is not
located, all the accounts should be checked thoroughly as follows:
(a) Journal will have to be checked
to ascertain that total debits and credits of each entry agree.
(b) Total of subsidiary books i.e.
sales book, purchases book to be checked to find that correct posting of the
respective accounts has been done.
(c) Checking should be done to
ensure that discount column; total of cash book have been correctly posted and
entered in trial balance.
(d) If all
these efforts fail to locate the errors a full rechecking of additions, posting
and balancing will have to be done and it would be advisable that the work of
re-checking is done by a staff different from those who had done the initial
checking. |
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Note for International VAT USers and GST Users in India
Many business use services of Tax Consultants and Chartered Accountants for filing the Tax Return and the tax return of the software is not used. To assist such activity you can export all reports from the software to MS Excel or MS Word and submit it to your tax adviser for financial figures for the business . The software will perform all Inventory Control, Vouchers, Nominal Ledger Accounts along with Working/Trading and Profit & Loss account that will give you all figures ready for export for filing Tax Return. As soon as you are sure about the changes you want in the visual interface and printing regarding your GST requirements we will modify the software software as per your GST requirements. To get any of the off-the-shelf software modified for visual interface and printing please Contact Us Now. We will carry out all required customization for GST as per your requirements in the existing software in professional and timely manner . For any required customization as per GST in any of the off-the-shelf software, please contact us now. We will carry out required customization for GST as per your requirements in the existing software at nominal additional charges. Give us details of required customization for a man-hour or work estimate. For official reference to GST refer to following links:GST (Goods and Service Tax) Circular by Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India. Finance Act 2016 of Government of India HSN codes for Goods and Service Tax (GST) in India Central Board of Excise and Customs - HSN Codes Circular by CBEC, Government of India - About HSN Codes.
Central Goods and Services Tax (CGST) Rules, 2017 Draft government Approved Format Under Goods and Services Tax - Invoice Rules What is GST Compliant Business? What are the specific mandatory fields in an GST compliant invoice? Why the invoice an important financial instrument? What are Registered and Un-Registered Dealers? There is a lot for your business to catch up on those links along with online tax filing and registration for trading. Give us the details of required work you want in the off-the-shelf VAT accounting system and we shall make it GST compliant invoicing and accounting for your business at nominal additional charges. Cheers. Happy Accounting. If you want to know the details of for making VAT/CST system compliant to GST system: Standard rate of $15 per man hour shall be applicable for making any of off-the-shelf VAT based accounting software systems into CGST/SGST Compliant Accounting. Give the details of customization required in any of our off-the-shelf VAT accounting systems made for various business to get a quote of additional charges. See demo of software on website. See official Indian Government CGST/SGST Specification on the panel above here. Click for more information on Value Added Tax (VAT). Free Download of Full Featured Software - Try Full Featured Software Before Order - Time Limited 30 days Full Featured Version of these software are available for download from our website www.freeaccounting.in. HiTech Billing, Accounting Software Off-the-Shelf versions are available for Business, Traders, Industry, Hospital, Hotel, Petrol Pump, Medical Store & Distributor, Automobile or Motorcycle Dealers, Newspaper or Magazine Publishers, VAT Accounting & Billing and Commodity Brokers. | ||||||
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