Methods of preparing Trial Balance

(i)   Balance Method

(ii) Total Method

(ii) Balance Totals Method

(i) Balance Method

In this Balance method, the balance of each account (which may be debit

balance or credit balance) is extracted and written against each account;

we write debit balance in the debit column and credit balance in the

credit column.

(ii) Total Method

In this method the total of both sides of every account in the ledger

is written against the name of the respective account without balancing

them in the form of debit and credit balances respectively.

(iii) Balance totals Method

Trial Balance is prepared by combining the first and second methods.

However, in practice the trial balance is prepared with debit and credit

balances of various accounts in the ledger. Normally balance method is

used.