How to Make a Trial Balance from Ledger Balances?

Trial Balance from Ledger Balances

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

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

According to the Total Method, total 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.


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  70000  Carriage Inwards  1500
 Opening Stock  20000  Carriage Outwards  2000
 Salaries  10000  Plant & Machinery  17000
 Returns Inward  500  Investments  7000
 Returns Outward  6000  Sales  90000
 Purchases  10000  Patents  10000
 Sales Ledger Control  7000  Furniture  8000
 Purchase Ledger Control  40000  Discount Allowed  1000
 Cash in Hand  5000  Misc. Receipts  4000
 Cash at Bank  3000  Closing Stock   9000



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

   Debit  Credit
 Capital    70000
 Opening Stock  20000  
 Salaries  6000   
 Returns Inward  4000   
 Returns Outward     90000
 Purchases  40000  
 Sales Ledger Control  23000   
 Purchase Ledger Control    42000 
 Cash in Hand  7000  
 Cash at Bank  12000   
 Carriage Inwards  3000   
 Carriage Outwards  1500   
 Plant & Machinery  15000   
 Investments  10000  
 Sales    57000
 Patents  17000  
 Furniture  30000  
 Discount Allowed  1200   
 Misc. Receipts    3000
 Total  2,20,000  2,20,000


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