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How trial balance is prepared by using balances and totals method?
This method is used rarely because it duplicates the work. In this method, both balances and totals of debit and credit sides are tabulated in separate columns. Debit totals are recorded in the debit total column and credit totals are recorded in the credit column separately. Similarly, debit balances are recorded in the debit balance column and credit balance is recorded in the credit balance column.
Format
The format for preparing the trial balance by using balances and totals method is given below −
| Title DD/MM/YYYY | ||||||
|---|---|---|---|---|---|---|
| Sl.No | Particulars | Ledger folio | Totals | Balances | ||
| debit | Credit | |||||
| Total | ||||||
Here,
- Title − Name of the company.
- DD/MM/YYYY − Trial balance prepared Date, Month and Year.
- Sl. No − Ledger account number (serial numbers).
- Particulars − Full account name of ledger account.
- Ledger folio − Page number of ledger balance of accounts.
- Debit − Debit total.
- Credit − Credit total.
- Debit (balances) − Records debit balances.
- Credit (balances) − Records credit balances.
Advantage
- Both methods are used in a single method.
Disadvantages
The disadvantages for preparing the trial balance by using totals method are mentioned below −
- Long process
- Time taking
Updated on: 12-Jul-2021
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