Question

State the meaning of debit balance of Trading Account. (Answer in one sentence)

Answer 1

In accounting a debit balance is the ending amount found on the left side of a general ledger account

Answer 2

Explanation:

In the basics of Financial Accounting, the concept of debit and credit are taught. Every account head has two parts, one is debit and one is credit. Let us take an example to better understand the concept. For example if there is an account head of Cash, then if we receive cash, then the debit side of the account head of Cash will be increased. Similarly, if we take out cash from the account, the credit side of the cash account would increase. If, at the end of the accounting period, the balance of the cash account is debited with a certain amount, it means we have this amount of cash in hand with us.