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Trial Balance - Methods
A trial balance can be prepared in the following methods.
1. The Total Method : According to this method, the total amount of the debit side of the ledger accounts and the total amount of the credit side of the ledger accounts are recorded.
2. The Balance Method : In this method, only the balances of an account either debit or credit, as the case may be, are recorded against their respective accounts.
The balance method is more widely used, as it supplies ready figures for preparing the final accounts.
Points to be noted :
i. Date on which trial balance is prepared should be mentioned at the top.
ii. Name of Account column contains the list of all ledger accounts.
iii. Ledger folio of the respective account is entered in the next column.
iv. In the debit column, debit balance of the respective account is entered.
v. Credit balance of the respective account is written in the credit column.
vi. The last two columns are totalled at the end.
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