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 --> BS
Trial 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 |