Procedures of Preparation to Trial Balance

Things to remember

• A trial balance is prepared on daily or monthly or yearly basis as per the requirement of the business.
• Total method: Under this method trial balance is prepared with the debit and credit totals of all the ledger accounts.
• Balance method: Under this method trial balance is prepared with the debit and credit balance of all the ledger account.
• Compound method: Under this method trial balance is prepared both with the total and balance of all the ledger account.