Q.What are the methods of preparation of Trial Balance ?

Three methods: Total method, Balance method, and Total-and-Balance (combined) method.

1. Total Method (Gross Trial Balance)

The total of the debit side and the total of the credit side of every ledger account are written in the respective columns of the Trial Balance. The two column totals must agree. It is rarely used because it does not directly give account balances.

2. Balance Method (Net Trial Balance)

Only the closing balance (debit or credit) of each ledger account is entered in the Trial Balance. This is the most widely used method because the balances are directly required for preparing the final accounts.

3. Total-cum-Balance Method (Combined)

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