Balance method of preparing trial balance is very common. It is prepared with the help of ledger balances. First of all, all ledger accounts are balanced at the end of the year. A balance is the difference between the two sides of an account. If the debit side of an account is bigger, then insert the difference on the credit side of the account but it is known as 'debit balance'. On the other hand, if credit side of an account is bigger, then insert the difference on the debit side of the account. It is known as 'credit balance'. Now, the debit balance shall be entered in the debit and credit balance in the credit column of trial balance. The total of both debit and credit side must be equal.
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