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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
CCP102.118 1
Objectives:
On completion of this period you will be able
to know
How to Prepare a Trial Balance under Net
balances method

CCP102.118 2
Recap

There are two methods for preparation of T.B.


b) Totals methods

c) Balances method

In the last class we have seen preparation of trial balance


under totals method

CCP102.118 3
Balances method:

Under this method, each ledger A/c is


balanced and these balances are taken
to prepare trial balance.
This is the scientific method and being
followed

CCP102.118 4
From the following ledger balances prepare
the trial balance as on 31-3-2004
Rs:
Capital 50,000
Purchases 70,000
Prepaid expenses 500
Sales 1,00,000
closing stock 20,000
Furniture 45,000
Sundry debtors 15,000
Sundry creditors 10,000
Sundry expenses 3,000
Cash at bank 6,450
Cash in hand 50
CCP102.118 5
Solution
Trial Balance as on 31-3-2004
S no Particulars Debit Credit
1 Capital 50,000
2 70,000
3 Purchases 500
Prepaid expenses 1,00,000
4 Sales 20,000
5 Closing stock 45,000
6 Furniture

CONTINUED……
CCP102.118 6
7 Sundry debtors 45,000
8 Sundry creditors 15,000
9 Sundry expenses 3,000
10 Cash at bank 6,450
11 Cash in hand 50

Total 1,60,000 1,60,000

CCP102.118 7
Summary:
We have learned in this session:
Preparation of trial balance under net
balances method
The debit balance of each account is written
in the debit column of trial balance
The credit balance of each account is written
in the credit column of trial balance

CCP102.118 8
Assignment :
Prepare Trial balance form the following items
Purchases 43,000 Rent 4,150
Sales 72,500 Returns outwards 400
Insurance Investments 3,930
Premium 510 Creditors 14,260
Drawings 6,280 Salaries 36,390
Plant & Machy. 4,500 Cash at Bank 1,090
Commission paid 1,070 Fuel 2,230
Repairs Capital 30,000
Opening Stock 880 Carriage 240
Returns Inwards 11,200 Bad debts 690
1,000
Ans: 1,17,160
CCP102.118 9
Quiz

1. Trial balance is prepared in____.


a) Two methods.
b) One method
c) Four methods.

CCP102.118 10
Quiz(Contd.)
1. Trial balance helps to know______.
a) Arithmetical accuracy of books
b) Whether all the transactions are entered properly.
c) None.

CCP102.118 11