How to Prepare a Trial Balance from Ledger Balances?

Prepare Trial Balance from Ledger Balances

Preparing a trial balance from ledger balances is the next step of posting and balancing ledger accounts. The trial balance is a statement of debit and credit balances that are extracted from ledger accounts on a specific date.

The trial balance is prepared with two different techniques: Total Method and Balance Method.

According to the Total Method, the sum of debits and credits of every account is shown in the trial balance, i.e. both debit and credit totals are recorded in the trial balance. On the other hand, according to the Balance Method, only the Net balance which is the difference between credit and debit total is transferred and recorded.

Related Topic – What is Adjusted Trial Balance?

Prepare a trial balance as on 31st Dec 2013 by filling in the debit and credit columns accordingly for each ledger balance mentioned below.

 Account Balance Account Balance
 Capital 70,000 Carriage Inwards 1500
 Opening Stock 20,000 Carriage Outwards 2000
 Salaries 10,000 Plant & Machinery 17,000
 Returns Inward 500 Investments 7000
 Returns Outward 6000 Sales 70,000
 Purchases 80,000 Patents 10,000
 Sales Ledger Control 7000 Furniture 8000
 Purchase Ledger Control 40,000 Discount Allowed 1000
 Cash in Hand 15,000 Misc. Receipts 4000
 Cash at Bank 11,000 Closing Stock  9000



Trial Balance From the Above Ledger (31st Dec 2013)

 Particulars Debit Credit
 Capital  70,000
 Opening Stock 20,000 
 Salaries 10,000  
 Returns Inward 500 
 Returns Outward   6000
 Purchases 80,000 
 Sales Ledger Control 7000  
 Purchase Ledger Control  40,00 
 Cash in Hand 15,000 
 Cash at Bank 11,000  
 Carriage Inwards 1500  
 Carriage Outwards 2000  
 Plant & Machinery 17,000  
 Investments 7000 
 Sales  70,000
 Patents 10,000 
 Furniture 8000 
 Discount Allowed 1000  
 Misc. Receipts  4000
 Total 1,90,000 1,90,000

The way a balance is transferred to either debit or credit side of a trial balance depends on the nature of that account, below is the table showing the relationship between types of accounts and their usual balances.


 Type of Account Usual balance
 Assets Debit
 Liability Credit
 Capital Credit
 Revenue Credit
 Expenses Debit
 Drawings Debit
 Contra Asset Credit
 Contra Liability Debit


>Read What is a Contra Account?