Study of lattice QCD at finite chemical potential using canonical ensemble approach

New approach to computation of canonical partition functions in $N_f=2$ lattice QCD is presented. We compare results obtained by new method with results obtained by known method of hopping parameter expansion. We observe agreement between two methods indicating validity of the new method. We use results for the number density obtained in the confining and deconfining phases at imaginary chemical potential to determine the phase transition line at real chemical potential.