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Explain how trial balance is prepared by using the balances method
This is the most commonly used method for preparing a trial balance. In this method, closing balances are tabulated in two separate statements. All the credit balances are recorded in the credit column and all the debit balances are recorded in the debit column. Both balances are then tallied.
The format to prepare a trial balance is as follows −
|Account number||Account title||Ledger folio||Balance|
- Title − Name of the company.
- DD/MM/YYYY − Trial balance prepared Date, Month and Year.
- Sl. No − Ledger account number (serial numbers).
- Name of account − Full account name of ledger account.
- Ledger folio − Page number of ledger balance of accounts.
- Debit − Debit balance.
- Credit − Credit balance.
The advantages of trial balance are as follows −
- Financial accounts are easily prepared.
- Saves time.
- Minimizes labour cost.
- The only disadvantage is that it includes the undisclosed errors.
- How trial balance is prepared by using balances and totals method?
- How trial balance is prepared by using the totals method?
- How to prepare trial balance by using balances method for the given data?
- How is the balance sheet prepared from trial balance?
- Explain the format of trial balance and how it is prepared
- Explain the concept of trial balance
- Prepare trial balance by using totals method for the given data
- Explain trial balance with an example
- Prepare trial balance using total and balance method for the given data
- What is adjusted trial balance?
- What is unadjusted trial balance?
- What is trial balance in accounting?
- What are the objectives and features of trial balances?
- Prepare horizontal balance sheet for the following trial balance.
- Distinguish between trial balance and balance sheet