The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together. True False

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Business

Reed Le

12 November, 00:30

The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together. True False

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Answers (1)

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Kendall Bean · Answer 1

False

Explanation:

The balance of an account refers to the closing balance of such an account head. Closing balance would be the balance at the end of the period which is carried forward and subsequently brought forward while preparing books of accounts of the subsequent period.

Such a balance is arrived at after posting all debit entries and credit entries relevant to an account and the difference between the two i. e excess of debit over credit or excess of credit over debit determines the balance to be carried forward to the subsequent period books.