Methods of preparing Trial Balance

Trial balance can be defined as a statement in which various accounts of ledger are transferred so as to check the arithmetical accuracy of the books of accounts. Here is the list of methods of preparing trial balance –

1. Total method – In this method, debit and credit total of each account are shown in the two amount columns against it.

2. Balance method – Under this method difference of each account is taken out. If the debit side of an account is greater than the credit side the difference is put in the debit side of trial balance and vice versa.

3. Total and Balance method – It is the combination of the above two methods. Under this method there are 4 columns two for difference amount and two for total amount of each account.

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