The Difference Between The Debit And Credit Side of An Account Is Called What?
When the debit side of an account, such as an asset account, exceeds its credit side, then there is a debit balance as the total of debit column amount exceeds the total of credit column amount.
Similarly, when the total of credit side is more than the total of debit side, then there is a credit balance of an account.
The resulted balance, either a debit balance or a credit balance, is the Balance Carried Down (Balance c/d) to be transferred to Trial Balance.
If there is a debit balance of an account, then the balance c/d is written on credit side and if there is a credit balance, then it is written on debit side of an account.
For example, the balance c/d of a furniture account is Rs. 70000, which must go to Unadjusted Trial Balance for further processing.
ABC Company
Furniture a/c
For The Period, 2021
Rs. Rs.
Opening Balance 50000
New Purchased 20000
Balance c/d 70000
_______ ________
Total 70000 Total 70000
_______ ________
_______ ________
The above furniture t account shows a debit balance as the debit side is greater than the credit side, so resulting a debit balance which is also a balance carried down (Balance c/d) written on credit side.
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