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When the Balance Sheet column totals don't agree on the first attempt work backward through the process used in preparing the work sheet exclusively take the following steps until you discover the error: - Retotal the two Balance Sheet columns to see if you made a fault in addition. If the column totals don't agree check to see if you didn't extend a balance sheet item or if you made an incorrect extension from the Adjusted Trial Balance columns.
- Retotal the Statement of Retained Earnings columns and determine whether you entered the right amount of retained earnings in the appropriate Statement of Retained Earnings and Balance Sheet columns.
- Re-total the Income Statement columns and determine whether you entered the correct amount of net income or else net loss for the period in the appropriate Income Statement and Statement of Retained Earnings columns.
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