12 April 2010
The diffeerence is trial balance may be bcause of the following reason 1) Amount wrongly posted 2) Amt.posted on the wrong side of the ledger i.e debit side instead of credit side. 3) Non-posting to ledger a/c. 4) Total mistakes of ledger a/c. cash/bank, sales/purchase register etc.
There is some Techniques to find the trial balance difference. 1) If the amount of trial balance difference can be divided by 9 (means no fraction) then it means interchange of figures. For eg. If actual amt is.91000 but wrongly posted as 19000, the difference will be 72000 which can be divided by 9. So u can easily find out the reason.
2) If the amt is posted in wrong side, i.e. debit instead of credit, then there will be double effect. It means if Rs.500 is posted on the wrong side, then the TB difference will be Rs.1000/-.So, this is also a technique.
In analysing the balance sheet/P&L A/c, you should look at the capital amount, current ratio, Debt equity ratio, Profitability, GP Ratio etc.
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