How do I check for errors when my balance sheet does not balance?

 

To check for errors when the balance sheet is unbalanced.

Total assets, total liabilities, and owner's equity must be equal on the balance sheet; if they do not balance, then find errors as follows;

1. Check if addition and subtraction are correct. To ensure mathematical calculations have been properly done.

2 Check out the difference between the total of assets, the total of liabilities, and the owner's equity. The difference shows the sum of the error. Find an amount that equals the difference.

3 Examine the owner's equity amount recorded on the balance sheet versus the owner's equity ending amount recorded on the owner's equity statement. In case the owner's equity amount was drawn from the worksheet, then the error's amount is equated to the net increase or decrease on the owner's equity shown on the owner's equity statement.

4 Check amounts recorded on the balance sheet versus items recorded in columns of the work sheet's balance sheet. Ensure each amount has been recorded, ensure that no number has been transposed, and ensure that decimals are in the correct position in all amounts.