Page 72 - Office Practice and Accounting 10

Explanation of the columns
At the top of the trial balance, name of the company or firm is written along with the
date, on which trial balance is prepared.
1. In this column, serial number of account heads is written.
2. This column is to write the name of account heads.
3. Ledger folio (i.e. page number of ledger) is written in this column.
4. This column is to write debit amount of respective account.
5. Credit amount of corresponding account is written in this column.

Methods of preparing trial balance
There are three methods of preparing trial balance. They are :
1. Total Method: According to this method, the debit totals and credit totals of
each account of ledger are recorded in respective sides of trial balance. This
method is not popular in preparing the trial balance because final account is
prepared with the help of ledger balances but this method provides the total
amount of debit and credit of each ledger. Normally, accounting figures seem
large if total method is applied.
Trial Balance of ..........................
As on ..........................

Total Amount of Total Amount of
S.N. Particular LF
Dr. (Rs.) Cr. (Rs.)

2. Balance Method: According to this method, only the balances of the accounts
either debit or credit, are recorded against their respective accounts. Preparation
of trial balance under this method is popular and common, now a days. The
difference of the two sides of every account are found out and short amount
is added to make the ledger balances equal, if there is difference in ledger. The
added amount is brought down in opposite side. The brought down amount is
taken to respective side of trial balance. The total of debit column and total of
credit column of trial balance should be equal to prove arithmetical accuracy.
Trial Balance of ..........................
As on ..........................

S.N. Particular LF Dr. (Rs.) Cr. (Rs.)

66 Office Practice and Accounting 10