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DEPARTMENT OF TECHNICAL EDUCATION

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,

 the receiving aspect (Dr.) and the giving


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

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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

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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

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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

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Debit Column Of Trial Balance contains
Assets accounts like
 Land account
 Buildings account
 Machinery account
 Debtors account
 Stock account etc

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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.

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Summary
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

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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

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