As per the conjoined explanation of both credit and debit column, it should be made sure that in all the methods the trial balance should tally.The entire procedure of preparing trial balance is based on 3 methods. Those methodologies in balance preparation are as follows:

  • Total method
  • Balance method
  • Balance and Total method
  1. Total method

You are already aware that in every account credited and debited amount is written separately in trial balance. Total of debit section is written in debit column, and that of credit section is written in credit column. As per this method, the credited and debited amount in totality should be same on both the sides. And if the recorded amount does not tally with each other, then it signifies the presence of errors. It is necessary that all such mistakes are identified and then corrected.

  1. Balance method

In accounts, it is a known fact that there are 2 sections in ledger accounts. They are credit side and debit side.  It is with the help of balance of ledger accounts; trial balance is prepared. Monetary information in ledger balanced is used and balanced at the close of a certain financial period.

In an account, if credit section shows an excess than debit section, then that account will show credit balance. Information of this is recorded in the trial balance at credit column. Similarly, when debit section showcases excess than credit section, that balance record (debit balance) is written in the debit column.

All in all, the main idea of utilizing balance method is to tally the amount information of both the credit and debit side (same amount data).

  1. Balance and Total method

In trial balance, this method showcases both the methodologies that are stated above, i.e., balance method and total method. In this case, the division of accounts column is done via both these methods. It is true that different methods will give different results in accounting balance. But the idea of utilizing both these methods is to make sure that credit and debit amount in totality are same on both the sides.

Methods of Preparing Trial Balance 1Solution.

Journal Entries

 

Methods of Preparing Trial Balance 2
Methods of Preparing Trial Balance 3

Ledger Accounts

Cash Account

                        Dr.                                                                                                                                           Cr.

Methods of Preparing Trial Balance 4

                                                                                                               

Bank A/c

                                Dr.                                                                                                       Cr.

Methods of Preparing Trial Balance 5

 Purchases A/c

                                           Dr.                                                                          Cr.       

Methods of Preparing Trial Balance 6

Nancy’s A/c

                        Dr.                                                                                               Cr.

Methods of Preparing Trial Balance 7

Discount Received A/c

                               Dr.                                                                                                Cr.

Methods of Preparing Trial Balance 8

Capital A/c

                                                         Cr.                                                                                Dr.    Methods of Preparing Trial Balance 9
 Machinery A/c

                              Dr.                                                                                             Cr.

Methods of Preparing Trial Balance 10

Rana’s A/c

               Dr.                                                                                                       Cr.

Methods of Preparing Trial Balance 11

 

Salaries A/c

                            Dr.                                                                                               Cr.

 Methods of Preparing Trial Balance 12

 

 Sales A/c

            Dr.                                                                              Cr.

Methods of Preparing Trial Balance 13

Rent A/c

              Dr.                                                                                                          Cr.

Methods of Preparing Trial Balance 14

Rohit’s A/c

              Dr.                                                                                      Cr.

Methods of Preparing Trial Balance 15

Interest on Capital A/c

              Dr.                                                                                                    Cr.

Methods of Preparing Trial Balance 16

 

Depreciation A/c

              Dr.                                                                                                Cr.

Methods of Preparing Trial Balance 17
method1
method 2
method 3
method 4
method 5
method 6Solution

Redrafted Trial BalaA/ce

As on 31-dec-2006

method 7

 

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