What do you understand by balancing of a | Class 11 Accountancy Chapter Recording of Transactions - 2, Recording of Transactions - 2 NCERT Solutions

Question:

What do you understand by balancing of account?

Answer:

Balancing of Account:- Balancing an account means totalling the two sides and striking the difference. The difference is written in the column with shorter balance and is carried forward as a balance in the next accounting period.

The difference between the sum of the two sides of an account is called the balance. This is the most important part of an account as it shows the value or position of asset, liability, capital, income or expenses of which the account is a record. If the total of the debit side exceeds the total of the credit side then this would be represented by a debit balance and the opposite is true for a credit balance.


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Welcome to the NCERT Solutions for Class 11 Accountancy - Chapter . This page offers a step-by-step solution to the specific question from Excercise 2 , Question 6: What do you understand by balancing of account?....