Balancing-off accounts

4 important questions on Balancing-off accounts

How are totals shown in accounting?

Totals are shown with a single line above them and a double line underneath.

How is an account closed off?

By inserting the totals on each side.

How is an account balanced-off?

  1. Add up both sides to find out their totals.
  2. Deduct the smaller total from the larger total to find the balance.
  3. Now enter the balance on the side with the smallest total. [balance carried down]
  4. Enter totals level with each other.
  5. 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?

A debit balance is when the debit side originally exceeded the total of the credit side. A credit balance is when the balances are carried down to the credit side.

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