Methods of Preparation of Trial Balance

 

Methods of Preparation of Trial Balance

Two methods used in the preparation of the trial balance are:

1. Balance Method: In this method, it is the net amount of a ledger that gets displayed in a trial balance. It can either be debit or credit balance. Under this method, the trial balance can be prepared only after all the accounts get balanced. This is one of the accurate methods for the preparation of final accounts.

2. Totals Method: In this method, the total of each side of the account (debit and credit) gets posted in the trial balance. This method provides higher mathematical accuracy. However, the preparation of final accounts is not usually conducted using this method because of the scope of duplication, resulting in errors. 

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