Question

What is the method of final account ?

Answer 1

Preparation: There are two methods for preparing the Trial Balance First Method: In this method, Ledger Accounts are not balanced. They are totaled. The debit side totals and the credit side totals are entered in a separate sheet. The grand total of Debit Column will be equal to the grand total of the Credit Column. Second Method: This method is more widely used. In this method, Ledger accounts are balanced. The brought down balances are then brought to a sheet as given bellow. Suresh Babu’s Books Trial Balance as on _________ 20___ Debit Balance Credit Balance S.No. Name of Account L.F. Rs. P. Rs. P. Assets, Sundry Debtors, Losses, Expenses and Drawings and debit balances; Capital, Liabilities, Sundry Creditors, Gains, Incomes and Capital, Revenues are credit balances.