Question

Explain the different methods of preparing trial balance ?

Answer 1

Total Method : In this method, the debit and credit totals of each account are shown in the two amount columns (one for debit total and the other for the credit total) against it.

Balance Method : In this method, the difference of each account is extracted . If the debit side of an account is bigger in amount than the credit side, the difference is put in the debit column of the trial balance and if the credit side is bigger , the difference is written in the credit column of the Trial Balance .