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Below are diagrammatically explained methods to prepare Trial Balance.
The following are the methods of preparing trial balances.
Totals method: In Totals method, the total of each side (debit and credit) of the ledger account is determined individually and then it is shown in the trial balance in each of the respective columns. Accounting is based on the double entry system, therefore the total of debit column and the total of credit column in the trial balance should be in agreement with each other.
Balances Method: In this method the closing balances of all accounts are tabulated in a different sheet. In this method brought down balances are brought to this statement.
Totals-cum-balances Method: It utilizes both the totals method and balances method. There are four columns, of which two columns are for writing debit and credit totals of accounts while, two columns are for writing the debit and credit balances of these accounts.