|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.
- What do we mean by balancing ledger accounts?
- Revision Note On Trial Balance
- Steps To Balance The Trial Balance
- Explain whether it is true by giving an example that the Trial Balance provides “arithmetic proof of the accuracy of the records, it does not provide “theoretical proof”
- Total Debtor Accounts Versus Individual Ledgers