Question

prepare a specimen of an account and explain it's each column.​

Answer 1

Total Method:

In this method, ledger accounts are not balanced. They are totaled. These totals are entered in the debit and credit columns. The grand total of debit column will be equal to the total of the credit column.

Balance Method:

Under this method, the closing balances of ledger accounts are tabulated in a separate statement. The brought down balances are brought to this statement.

All debit balances are shown in the debit column and all credit balances in the credit column. This method is more commonly used one.

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