Question

State whether the following statement is ‘True or False’ with reason.

When debit side of an account is greater than the credit side, the account shows debit balance.

Answer 1

This statement is true.

Explanation:

The statement is correct because an account shows a debit balance when the sum of the amounts on its debit side is greater than the sum of the amounts on its credit side. This represents a net debit amount, indicating that more value has been recorded as debits than credits in that particular account.