An Account is Said To Have A Debit Balance Or Credit Balance

An Account is said to have a Debit Balance when debit side exceeds the credit side. It means debit side is larger than credit side, so credit side needs more amounts to become equal to debit side, so Balance Carried Down (Balance c/d) is written on credit side to Balance or Equalize Debit And Credit Sides of An Account. It is a Ledger’s Balance of an account that may be either debit or credit.

An Account is Said To Have a Credit Balance if Credit Side's Total is more than Debit side. Now Debit side is needed more amount to become equal to credit side, so Balance Carried (Balance c/d) is created on debit side to equalize the totals of both debit and credit sides.