Balancing-off accounts
4 important questions on Balancing-off accounts
How are totals shown in accounting?
How is an account closed off?
How is an account balanced-off?
- Add up both sides to find out their totals.
- Deduct the smaller total from the larger total to find the balance.
- Now enter the balance on the side with the smallest total. [balance carried down]
- Enter totals level with each other.
- Now enter the balance on the line below the totals on the opposite side to the balance shown above the totals. [balance brought down]
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What is the difference between a debit balance and a credit balance?
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