Errors Balancing an Account

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Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 06, 2023

If an arithmetical error occurs when balancing a ledger account, the error will be isolated to that account only.

Despite this, it will cause the two sides of the trial balance to give different totals. This error may result in:

  • The account shows a balance larger than the correct balance, i.e. an over-debit (if it is a Dr. balance) or an over-credit (if it is a Cr. balance)
  • The account shows a balance smaller than the correct balance, i.e. an under-debit (if it is a Dr. balance) or an under-credit (if it is a Cr. balance)

To correct an over-debit or an under-credit, credit the account with the amount of difference.

Similarly, to correct an under-debit or an over-credit, debit the account with the amount of difference.

The corresponding entry, in both cases, is made in the suspense account.

Errors Balancing an Account FAQs

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About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.