When balance sheet doesn’t balance?

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What is the first thing that I should be looking into when I have a balance sheet that does not balance at all? Are there common mistakes that I may have made that can cause that?

1 Answer

score 0 · Answer 1 · 2012-12-02T19:38:48+00:00

Hi,

In order for the balance sheet to balance, you need to have equal credits and debits. Therefore, you have made some kind of mistake in the credits or debits.

You also need to consider the interaction of the income statement and the balance sheet through the profit and loss account.

In any case, I would advise you to have a look at the credits and the debits you have posted and work out what it is the difference you get so that you can arrive to the journal(s) that is(are) wrong.