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How trial balance is prepared by using the totals method?
This method is not widely used because the accuracy of balances is not determined in this method. In the totals method, both credit total and debit total is tabulated in two separate columns and credit and debit sides of the ledger are totaled.
The format for preparing the trial balance by using totals method is given below −
- 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.
The advantages of preparing the trial balance by using totals method are given below −
- Accounts arithmetical accuracy is checked.
- Ledger balances are not required or no need to extract ledger balances.
The disadvantage is that the final accounts cannot be prepared by using this method.
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