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ANDHRA PRADESH
Name : R. Radha
Designation : Assistant Lecturer
Branch : Commercial and computer
practice
Institute : Central Institute of
commerce
Year : I year
Subject : Accountancy
Subject Code : CCP102
Topic : Trial Balance
Duration : 50 minutes
Sub Topic : Meaning & Methods of Trial
Balance
Teaching Aids : PPT, Animations
CCP102.116 1
Objectives
Upon the completion of this topic the student will
be able to know
Meaning of Trial Balance
Methods of Preparing Trial Balance
CCP102.116 2
Recap:
In the previous classes we have learnt
that each transaction is having two aspects,
CCP102.116 3
Trial Balance
Trial balance is a statement:
Containing Balances of all ledger accounts prepared as
at any given date
Arranged in the form of debit and credit columns
Placed side by side and
With the object of checking the arithmetical accuracy of
the ledger postings
CCP102.116 4
AIMS BEHIND PREPARATION OF
TRIAL BALANCE
To examine the implementation of double
entry book-keeping principle
to check the arithmetical accuracy of
books
To find out the errors
To facilitate the process of preparation of
final accounts
CCP102.116 5
Methods to Prepare Trial Balance
There are two methods:
Totals method
Net balances method
CCP102.116 6
Total’s method
It is also known as “gross trial balance method”
Total of debit side of an account is shown in the
debit column of trial balance
Total of credit side of an account is shown in the
credit column
CCP102.116 7
Net Balance Method
It is the most common method
First ledger accounts must be balanced
Debit balances of the account will be shown to
the debit side
Credit balance of the account will be shown to
the credit side
CCP102.116 8
Debit Column Of Trial Balance contains
Assets accounts like
Land account
Buildings account
Machinery account
Debtors account
Stock account etc
CCP102.116 9
Debit Column Of Trial Balance (contd.)
Expenses account and losses account like
Salaries account
Wages account
Rent account
Carriage account etc.,
CCP102.116 10
Credit Column of Trial Balance
Liabilities account like :
Creditors account
Loan account
All types of reserve account
Fund account etc
Incomes and gains account like
Interest realized account
Discount received account
Rent collected account
Sales account etc.
CCP102.116 11
Summary
It is a statement of debit and credit balances
CCP102.116 12
Quiz
2. In Trial Balance Cash account balance will figure
on the
A) Debit Side
B) Credit side
C) Both sides
D) None of the above
CCP102.116 13