Debit balance in assets side of Balance Sheet and credit balance in liabilities side of Balance Sheet.

There are some one-sided errors only in the books yet to be located

(i) Purchases of Rs 10,000 from Mohan recorded as Rs 1,000.
(ii) Payment to Varun recorded as payment to Tarun and do not effect trial balance.

If a transaction is omitted from recording in the books of accounts, it is called an Error of Omission. These may be of two types:
(i) Complete Omission: When a transaction is completely omitted from recording in the books of original entry, it is a case of complete omission. E.g., goods returned by a customer but not recorded at all.
(ii) Partial Omission: When a transaction is recorded in the books of original entry, but it is not posted into ledger, it is a case of partial omission. E.g., goods sold on credit to X recorded in purchases book, but posting is not made in the account of X.

Errors of commission is committed in such a way that the double entry is not completed, or a wrong entry is made in the books. For example: if a posting is made to a wrong account or to a wrong side in the same account or in a different account or totals are wrong. Such an error affects agreement of Trial Balance. Errors of principle, on the other hand, violates the rule of accountancy. This involves wrong distinction between expenses and assets and between incomes and liabilities i.e., between revenue and capital items. This does not affect the agreement of Trial Balance.

Trial Balance is a statement prepared with debit and credit balances of all accounts in ledger, to verify the arithmetical accuracy of the accounts. It is prepared after balancing all the accounts of ledger. There are two columns in a Trial Balance: debit and credit. While debit side includes all the debit balances, credit side includes all the credit balances of the accounts. It also helps in preparing financial statements, as it is a summarised version of the ledger. It is generally prepared on monthly or yearly basis.

Functions of a Trial Balance: (i) Ascertaining arithmetical accuracy: To act as a device to check the arithmetical accuracy of the accounting process culminating in the ledger accounts. If the Trial Balance agrees, it may be taken that arithmetical errors do not exist, even though this cannot be conclusively stated.
(ii) Summary: To afford a summarised version of the position of each account and accounts in general. Scanning the Trial Balance enables one to know the assets that one possesses, the amounts that are owing to others and the amounts due from others, etc.
(iii) Facilitates preparation of financial statements: To act as a starting point for the preparation of the final accounts, viz., the Profit & Loss Account and the Balance Sheet. The final accounts are made on the basis of the Trial Balance. The various adjustments that are to be made can be made only after the Trial Balance is ready.
(iv) Facilitating audit: To enable the auditor to see whether any corrections were made after the accounts were checked. The Trial Balance establishes figures relating to various accounts as on a particular date. Any correction that becomes necessary should be made later by specific journal entry. A correction made in the accounts already checked, without such a journal entry, will be easily known as it will necessitate a change in the balance of the account concerned.
The Trial Balance, thus, is a very useful device to control and check inaccuracies and act as a basis for further accounting work, mainly preparation of the Profit and Loss Account and the Balance Sheet.

Trial Balance is the statement which is prepared after ledger to abstract the balances of various accounts of ledger. Usually it is prepared on monthly basis but can be prepared at any point of time.
Following errors are disclosed by Trial Balance:
(i) Errors in balancing the accounts.
(ii) Errors in casting (overcast or undercast)
(iii) Errors in carrying the balance.

The following are the purposes of preparing a trial balances.
(i) To ascertain the arithmetical accuracy of the ledger accounts: The trial balance provides a useful check upon the ledger postings. If a trial balance tallies, it is proved that the posting to the ledger accounts.is correct. In other words, it ensures that both the aspects of each transaction have been posted into the ledger i.e. debit aspects have been posted on the debit side and the corresponding credit aspects on the credit side.
(ii) To help in locating errors: If a trial balance does not tally, it indicates that some errors have occurred and the accountant will then proceed to locate such errors even a small difference in the trial balance is to be given the same importance and attention as a large difference because it may be possible that there may be a number of errors which have off setted the effect of one another, resulting in a small composite difference.
(iii) To obtain a summary of the ledger accounts: A trial balance serves as a summary of all the ledger accounts. Scanning the trial balance enables one to know the assets, liabilities, expenses, incomes etc.
(iv) To help in the preparation of Final Accounts: As the trial balance contains if the list of all the Ledger accounts, it provides a basis for further processing of accounting data, i.e. preparation of final accounts namely. Trading and Profit & Loss Account and a Balance Sheet.