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Name : R. Radha
Designation : Assistant Lecturer
Branch : Commercial and computer
Institute : Central Institute of
Year : I year
Subject : Accountancy
Subject Code : CCP102
Topic : Trial Balance
Duration : 50 minutes
Sub Topic : Meaning & Methods of Trial
Teaching Aids : PPT, Animations
CCP102.116 1
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
In the previous classes we have learnt
 that each transaction is having two aspects,

 the receiving aspect (Dr.) and the giving

aspect (Cr.),
 that means for each debit there is equal
and corresponding credit.

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
 To examine the implementation of double
entry book-keeping principle
 to check the arithmetical accuracy of
 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
It is a statement of debit and credit balances

There are two methods in which Trial balance is

prepared .. Totals method and Net Balances method

CCP102.116 12
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