Balancing an account
At the end of a period each account is balanced. The balance is the difference between its two sides.
In this room: 3 tasks, 8 questions
- Finding the balance2 questions
- Carrying it down3 questions
- A credit balance3 questions
To balance an account:
- Add up the debit side.
- Add up the credit side.
- Take the smaller total from the bigger one.
If the debit side is bigger, it is a debit balance. If the credit side is bigger, it is a credit balance.
Answer the questions below
1 more question follows in this task.
The balance is written on the smaller side as balance c/d (carried down). Both sides then add up to the same total.
It is then brought down (b/d) on the opposite side, to start the next period.
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2 more questions follow in this task.
Liabilities, capital and income normally have a credit balance.
A credit balance on Trade payables is money the business still owes its suppliers.
Answer the questions below
2 more questions follow in this task.