If any errors exists in the books, it affects the accuracy of results of business operations revealed by the financial statements. Therefore, the error must be located for its rectification. The task of locating error is, however not easy. The location of errors will be easier if the following steps are systematically taken.
* Check the total of the trial balance
* Compare the ledger account balances carried to the trial balance
* Check the total of debtors' and creditors' accounts and compare with the balance of debtors' and creditors' amounts shown in the trial balance
* Check the total of the trial balance
* Compare the ledger account balances carried to the trial balance
* Check the total of debtors' and creditors' accounts and compare with the balance of debtors' and creditors' amounts shown in the trial balance
* Verify the total of subsidiary books and their posting to ledgers
* Compare the items of trial balance of the current year with the items of trial balance of the previous year to see if any balancing figure is omitted.
* Verify that all journal entries are posted into ledgers