[Gnukhata-users] balance of an account
arunkelkar at rediffmail.com
Sat Nov 12 10:29:53 UTC 2011
An account may have a balance or it may not have. Depending upon the type of
account, the balance could be Debit balance or Credit balance.
The balance represents the difference between the totals of two sides of an
account, that is, debit side and credit side.
If the total of debit side is more than the credit side, then the balance is
called debit balance, and it will be shown on the credit side. Similarly, the
credit balance is shown on the debit side of the account.
The accounts falling in the following groups will normally have Debit Balance:
Fixed Assets, Investments, Current Assets and Nominal (Expense) accounts.
While the accounts falling in the following groups will normally have Credit
balance: Capital, Secured Loans, Current Liabilities and Provisions and Nominal
If the balance in an account is not what it should normally have been, that is, if
it is a negative balance then while generating a Report of the Ledger account, the
report should show negative balance.
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