Question

An account has a debit balance if the total of credit side is greater than the total of debit side.

• A. True
• B. False

Answer 1

The correct option is B False

Balancing of an account means ascertaining the net effect of the transaction, i.e. the difference between the debit and credit side of the ledger account.

Thus, when the debit side of the ledger account exceeds the credit side, the balancing figure is termed as Debit balance.

All the assets expenses and losses show Debit balance.