Question

Answer in one Sentence only.

State the meaning of ‘Debit Balance’.

Answer 1

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.