Question

Select the most appropriate alternatives from those given below and rewrite the sentence :

When the total of debit of an A/c exceeds credit side, it is called ________ balance.
a) debit
b) credit
c) nil
d) real

Answer 1

When total of debit side of an A/c exceeds credit side, it is called debit balance.

Explanation:
When the debit side of an account exceeds the credit side, then the balancing figure is termed as debit balance. All the ledger accounts are required to be balanced. Balancing an account means ascertaining the net effect of the transaction, i.e. the difference between the debit and credit sides of the ledger account. If the debit side of an account exceeds its credit side, then it is called debit balance.