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Methods of Preparing the Trial Balance - Commerce PDF Download

How to make trial balance by all for methods?
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Methods of Preparing the Trial Balance


Methods of Preparing the Trial Balance:

There are mainly two methods of preparing the Trial Balance.

These are:

(i) Totals Method, and

(ii) Balances Method.

(i) Totals Method:

Under this method, the total of each side of account is shown respectively in the debit and credit columns of the Trial Balance. This type of Trial Balance is known as the ‘Gross Trial Balance’.

(ii) Balances Method:

As the name itself indicates, in this method, the balances of each account are shown in the Trial Balance. The debit balance is shown in debit column and credit balance is shown in credit column of amount.

Let us prepare the Trial Balance from the ledger accounts:Methods of Preparing the Trial Balance - Commerce

Methods of Preparing the Trial Balance - Commerce

Methods of Preparing the Trial Balance - Commerce

Methods of Preparing the Trial Balance - Commerce

Methods of Preparing the Trial Balance - Commerce

We see that the total of debit balances column in the above Trial Balance is equal to that of the credit balances column. This implies that the ledger has been correctly written up.

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