Question

4 of 32 | Multiple Choice &Accounts that have credit balance are closed by using the statement...
1 By balance b/d
2. By balance c/d
3 To balance b/d
4 To balance c/d​

Answer 1

Answer:

Correct option is

2. By balance c/d

Answer 2

Accounts that have credit balances are closed by using the statement ; D). To balance c/d

• We are supposed to use the statement, "balance c/d" when the balance for the particular year under consideration is being carried down as the closing balance of that ledger is always transferred to the next accounting period.

• The differential amount that is being denoted as "to balance c/d" is nothing but the difference that is inserted on the debit side to balance the account. This happens when the credit side of the ledger is greater than the debit side.