If the difference is divisible by 9 you may have made a transposition error in

If the difference is divisible by 9 you may have made

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If the difference is divisible by 9, you may have made a transposition error intransferring a balance to the trial balance or a slide error. A transposition error occurswhen two digits are reversed in an amount (e.g. writing 753 as 573 or 110 as 101). A slideerror occurs when you place a decimal point incorrectly (e.g. USD 1,500 recorded as USD15.00). Thus, when a difference is divisible by 9, compare the trial balance amounts withthe general ledger account balances to see if you made a transposition or slide error intransferring the amounts.An ethical perspective:Financial Deals, Inc.Larry Fisher was captain of the football team at Prestige University. Later, heearned a master's degree in business administration with a concentration inaccounting.
Upon graduation, Larry accepted a position with Financial Deals, Inc., in theaccounting and finance division. At first, things were going smoothly. He wastall, good looking, and had an outgoing personality. The president of thecompany took a liking to him. However, Larry was somewhat bothered when thepresident started asking him to do some things that were slightly unethical.When he protested mildly, the president said: "Come on, son, this is the way thebusiness world works. You have great potential if you don't let things like thisget in your way."As time went on, Larry was asked to do things that were more unethical, andfinally he was performing illegal acts. When he resisted, the president appealedto his loyalty and asked him to be a team player. The president also promisedLarry great wealth sometime in the future. Finally, when he was told to falsifysome financial statements by making improper entries and to sign somedocuments containing material errors, the president supported his request bystating: "You are in too deep now to refuse to cooperate. If I go down, you aregoing with me." Through various company schemes, Larry had convinced somefriends and relatives to invest about USD 10 million. Most of this would be lost ifthe various company schemes were revealed.Larry could not sleep at night and began each day with a pain in his stomachand by becoming physically ill. He was under great strain and believed that hecould lose his mind. He also heard that the president had a shady past and couldbecome violent in retaliating against his enemies. If Larry blows the whistle, hebelieves he will go to prison for his part in the schemes. (Note: This scenario isbased on an actual situation with some facts changed to protect the guilty.)If you still cannot find the error, it may be due to one of the following causes:Failing to post part of a journal entry.Posting a debit as a credit, or vice versa.Incorrectly determining the balance of an account.Recording the balance of an account incorrectly in the trial balance.

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