BALANCING
OF LEDGER ACCOUNT.
Hey Guyz, How was your Night. Hope it was beautiful
and peaceful? Mine was great. It’s therefore a New day and a beautiful one at
that, it’s really an honour to see and experience today don’t you think.
Anyways I know it’s kind of been a while we did this subject ACC 101. Let’s get
started.
Before the preparation of Trial Balance, the account
must be balanced off at regular intervals during the financial year. It is
necessary to balance each account in order to ascertain the overall position
recorded in the bookkeeping system. In balancing the account, the following
procedures must be followed:
1. Post
all debit items.
2. Add
all the items on the debit side.
3. Post
all credit items.
4. Add
all the items on the credit side.
5. Compare
both the two totals.
6. If
the debit side is greater, insert the difference in the credit side.
7. If
the credit side is greater, insert the difference in the debit side.
