How trial balance is prepared by using the totals method?

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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.

Format

The format for preparing the trial balance by using totals method is given below −

      

Title
DD/MM/YYYY
Sl.NoParticularsLedger folioTotals
debitCredit










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.

Advantages

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.

Disadvantage

The disadvantage is that the final accounts cannot be prepared by using this method.

raja
Published on 12-Jul-2021 10:50:13
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