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Total Amount Method

Under this method, the total amount of debit items and credit items in each ledger account is written in the respective column against respective account head’s name. There is no requirement to balance the ledger account under this method. Trial Balance under this method can be prepared immediately after the completion of posting to the ledger.


Illustration 2


Taking the same information as given in illustration 1, prepare the Trial Balance by Total Amount Method.


Trial Balance of X and Co. as on 31-03-2012
S. No. Name of Account L.F. Debit () Credit ()
1. Cash A/c 1,77,500 1,40,000
2. Machinery A/c 15,000
3. Salaries A/c 12,500
4. Ratan’s A/c 1,07,500 1,25,000
5. Purchases A/c 1,30,000
6. Purchase Returns A/c 2,500
7. Yogesh’s A/c 1,50,000 1,25,500
8. Sales A/c 1,52,500
9. Sales Return A/c 500
10. Capital A/c 2,500 50,000
5,95,500 5,95,500

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