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Details on ledger account balance
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The ledger account is known to be the collection of debits and credits that are made to a particular account at a specified place. Debits and credits are completely different about their action. So, they are collected separately and placed on either side of theaccount. Ledger balancing is an act where you need to find out the balance in ledger account. To manage the balancing of ledger account, the debit and credit need to be equal.
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Interpretation of ledger accounts balance
The ledger account balance is interpreted as:
- Total of Debit – Total of credit (in case the debit total is greater).
- Total of credit – Total of debit (in case the credit side is greater).
Ledger account balance is known to be the net amount that is settled down by adding up the debits and credits against each other. Mathematically, balancing of ledger accounts homework help will inform that the balance is defined as the difference between thetotal of credit side and atotal of thedebit side.
Ledger account balance = debitsidetotal – credit side total.
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