Question

Which of the following is/are method for preparation of trail balance ?

• A. Balances Method
• B. Totals Method
• C. Both (A) & (B)
• D. None of the above

Answer 1

The correct option is C Both (A) & (B)

There are 3 methods of preparation of trial balance :-

1) Totals method - In this method all the totals of debit and credit columns of the ledger accounts are transferred are transferred to the trial balance and the closing balances are of no concern.

2) Balances method - Here only the closing balances of the ledger accounts are transferred of the relevant debit and credit side.
3) Totals-cum-balances Method - This method is a combination of totals method and balances method.