Question

Q-1 What technique is used to find the net balance of an account after considering the totals of both
debits and credits appearing in the account?​

Answer 1

Answer:

The technique of finding the net balance of an account after considering the totals of both debits and credits appearing in the account is known as _________.

A

posting

B

purchase

C

balancing of an account

D

arithmetical accuracy test

Answer

Balancing of an accounts means ascertaining the net effect of the transactions, i.e. the difference between the debit and credit side of the ledger account. Thus, when the debit side of the ledger account exceeds the credit side, the balancing figure is termed as debit balance and vice versa. All the assets, expenses and losses show debit balance. Whereas, all liabilities, incomes and gains and capital show credit balance.

Answer 2

Answer:

Balancing of an account