Preparation of trial balance using total method

According to total method, the debit side and credit side of ledger accounts are added up. The debit totals are placed in debit column and credit totals in credit column of the trial balance. The total of debit column and credit column should agree.

The use of total method of preparing trial balance is very limited. The balance method is generally used for the preparation of trial balance because it shows in a summarized form the information from which financial statements can be prepared.

Keeping in view the importance of balance method, we shall use it in all the examples and exercises on this website.

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