what Trial Balance? state the difference bewtten Gross Trail
balance & Net trail Balance?
Answer Posted / sirajunisha
There are three methods for the preparation of Trial Balance;
1. Total or Gross Trial Balance.
2. Balance or Net Trial Balance.
Under the Total or Gross Trial Balance, the two sides of all
the ledger accounts are totaled up. Thereafter, a list of
all the accounts is prepared in a separate sheet of paper
with two "amount" columns on the right-hand side. The first
one for debit amounts and the second one for credit amounts.
The total of debit side and credit side of each account is
then placed on "Debit Amount" column and "Credit Amount"
column respectively of the list. Finally, the two columns
are added separately to see whether they agree or not. This
method is generally not followed in practice.
Under Balance or Net Trial Balance, first of all the
balances of all ledger accounts are drawn. Thereafter, the
debit balances and credit balances are recorded in "Debit
Amount" column and "Credit Amount" column respectively and
the two columns are added separately to see whether they
agree or not. This is the most popular method and generally
followed.
The various steps involved in the preparation of "Balance
Trial Balance" are:
a) Find out the balance of each account in ledger.
b) Write up the name of account in the first column.
c) Record the account number in second column.
d) Record the debit balance of each account in Debit column
and credit balance in credit column.
e) Add up the debit and credit columns and record the totals.
Is This Answer Correct ? | 12 Yes | 2 No |
Post New Answer View All Answers
Can anyone mail journal entries for me? my Mail id rukmini@live.in
what is difference between account and accounting
WHEN IN ADJUST. GIVEN THAT THERE IS VALUE OF RS...., OBSOLESCENCE STOCK INCLUDED IN CLOSING STOCK RS.......,WHAT IS THE PROPER WAY TO SHOW IN INCOME STATEMENT AND POSITION STATEMENT.
Expand-------NAC
What type of questions are asked for Interview of Manager Finance in Airport Authority of India ?
3.In TALLY,we used to call tally erp 9.like that,in sap we used to call SAP ECC 6.0.here what is ECC?,i know the abbreviation of ECC.i want to know the role of ECC?
In what cases can Convertible bonds be considerred as derivatives?
what is meant by cash purchase?
What do you mean by Green-shoe option?
what is sevice tax? on what service tax is applicable. explain with examples?
I want to become CFA so kindly provide me all information regarding this like fees structure,colleges in mumbai,duration etc.
Expand----------MTSC
How Many Types of Excise Duties?
Which Exchange determine Foreign ?
What three Specific Job Positions do you target from the Industry