What is the trick to finding an accounting mistake?

Question

I can't remember - if the error is divisible by 9, then it is a transposition error?? There were a couple others too. If anyone could help, I'd appreciate it.

Answer 1

If the error is divisible by 9, then it is a transposition error.

That's the only one I know of, but I'm not an accountant.

Answer 2

To find an error while extracting the trial balance, follow these steps:

1. Re-add the columns, it may be a simple math error. If the balances are now equal, stop. If they are still unequal continue with the steps below until the columns become equal.

2. Determine the amount you are off by.

~ If you are off by 10, 100, 1,000 it is probably a math error. Go back and see if you put in all of the correct numbers.

~ If the amount off is divisible by 9, you likely have a transposition (you entered 76 instead of 67) or slide (you entered 15 instead of 150) error. Go back and double check the amounts from the ledger.

3. Did you omit an account? Or did you put the account balance in the wrong column? Divide the difference by 2 and look for an account with that balance to see if it was entered in the wrong column.

4. Is there a math error in the ledger? Double check ledger work for a possible error.

5. Is there a posting error? Did you post an amount to the wrong account? Go back and check the journal against the ledger to see if they are in agreement.

Answer 3

That's what some people suggested in the 19th century and that belief was accepted by some. The fossil record shows that the bottommost layers contain the simplest creatures : single celled, bacteria. As you move up the layers, you see more complexity and then extinction. Then things pick up again, and a few more extinctions. There are 3 major extinction and 2 or 3 minor extinctions. The 65 million layer is interesting since it contains more iridium than normal amounts. Since iridium is often abundant in asteroids, scientists think a large meter hit the Earth, probably in Mexico (large crater with high density). This layer is called the K-T boundary region. I think it is now called C-T. That layer can be found all over the globe, so the asteroid hit ejected material that covered the planet. There is no proper explanation for this from the creationists side. They try hard however into fooling themselves.

Answer 4

divisible by 9 => transposition error

if a no. is on the wrong side => double the no. is error

Answer 5

Transposition Accounting

Answer 6

Transposition Error

Answer 7

The main trick is to let someone else run the numbers. Once you make the error, you tend to make it over and over.

Ron.