Question

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

• A. Debit
• B. Credit
• C. Nil
• D. Real

Answer 1

The correct option is A Debit

Accounts in the ledger are periodically balances, generally at the end of the accounting period, with the object of ascertaining the net position of each amount.

Balancing of an account means that the two sides are summed up and the difference between them is shown on the side, which is shorter in order to make their totals equal.

In case, the debit side exceeds the credit side of an account, the difference is written on the credit side and is called as debit balance.

If the credit side exceeds the debit side, the difference between the two appears on the debit side and is called as credit balance.