|At the end of an accounting period, a balance is struck on each account in turn.
This means that all the debits on the account are totalled and so are all the credits.If the TOTAL DEBITS EXCEED THE TOTAL CREDITS, there is said to be a DEBIT BALANCE on the accounts;
If the TOTAL CREDITS EXCEED THE TOTAL DEBITS, then the ledger account has a CREDIT BALANCE.
- Details Of Ninth Schedule Companies Act 1965(Act No 125)
- What do we mean by balancing ledger accounts?
- GCE “O” Level Principles Of Accounts ( Singapore )
- Explain what is the Chart Of Accounts and give examples of a simple and complex chart of accounts
- Errors Affecting The Trial Balance And Suspense A/c (Part 2 of 2)