Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 7 - No. 19)
Which of the following statements are true regarding balancing off accounts?
Ledger accounts should be balanced off at the end of each month
The accounts that are added up should be the same for both debit and credit side.
Balancing off an account involves simply adding up all the debit entries and finding the difference between them.
The difference is the balance on the account at any point in time.
Explanation
Accounts are balanced off at the end of the month by summing up the debits and credits on each side. The difference is the balance, which tells you how much is still owed.
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