3. Accounting Process
• Accounting is the process of
recording financial transactions
pertaining to a business.
• Accounting process, is a series
of procedures in the collection,
processing, and communication of
financial information.
4. Accounting Process
Classification of business transactions
(According to nature of transactions)
Recording of business transactions
(With rule)
Identification of business transactions
(Money Based)
5. Accounting Process
To take financial & managerial Decisions
(Communication to users & others)
Analysis & Interpretation of business
transactions (Financial Statement)
Summarization of business transactions
(Trial Balance, Rectification of Errors, Adjustment)
6. Trial Balance
A trial balance is a bookkeeping
worksheet in which
the balance of all ledgers are
compiled into debit and credit
account column totals that are
equal.
7. Trial Balance
A statement of all debits and
credits in a double-entry
account book, with any
disagreement indicating an
error.
8. Objects of Trial Balance
• Knowledge about the Assets &
Liabilities
• Arithmetical Accuracy
• To check the Double Entry Principles
• Important materials of Final Account
• To check the list of Creditors &
Debtors
9. Methods of Trial Balance
1. Total Method
2. Balance Method
3. Totals & Balance Method
4. Totals Method except the
closed accounts
10. Total Method of Trial Balance
A Trial Balance is a statement that
shows the total debit and total
credit balances of accounts. The
total of debit amounts shall be
equal to the credit amounts.
11. Balance Method of Trial
Balance
In this method, we total the debit
side and the credit side of the
accounts and balance them. We
then write these debit or credit
balances of the ledger
accounts in the respective debit
and credit columns in the Trial
Balance.
12. Total & Balance Method of
Trial Balance
In this method, we prepare four
columns. In two columns we
write debit and credit totals of
accounts and in the other two
columns, we write the debit and
credit balances of accounts.
13. Totals Method except the closed accounts
of Trial Balance
Under this method, except closed the
accounts of ledger whose total
balance is equal and remaining
account of ledger balance the
balances are also written in the
Debit balances are written in the
debit column and credit balances
are written in the credit column of
the Trial Balance.
