| BALANCING LEDGER ACCOUNTS:Balancing ledger accounts is normally done at the end of an accounting period where it is a routine process to have a balance struck on each account in turn. This means that all the debits on the account are totaled and so are all the credits. If the total debits exceed the total credits there is said to be a debit balance on the account; if the credit exceed the debits the account has a credit balance. {Note that if the basic principle of double entry has been correctly applied throughout the period it will be found that the credit balances equal the debit balances in total.}
There is a need to have the ledger accounts balanced before a trial balance is extracted. |