Trial Balance to Balance Sheet — KSLU Ethics Notes
Trial Balance to Balance Sheet
flowchart LR
TB[Trial Balance] --> Nom[Nominal Accounts]
TB --> RealAcct[Real and Personal Accounts]
Nom --> PL[Profit and Loss Account]
RealAcct --> BS[Balance Sheet]
PL --> NP[Net Profit or Loss]
NP --> BSTrial Balance — Errors Detected vs Not Detected
| Detected ✅ | NOT Detected ❌ |
|---|---|
| Error of posting wrong amount | Error of omission (transaction not recorded at all) |
| Posting to wrong side (Dr/Cr reversed) | Compensating errors (two equal opposite mistakes) |
| Arithmetic mistakes in ledger | Error of principle (wrong account type used) |
| Wrong casting of books | Complete reversal of an entry |