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Question
What is debit balance?
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Solution
When the total of the debit side is more than the total of the credit side the difference is debit balance and is placed on the credit side as ‘By Balance c/d’.
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| 2017 Aug. | Particulars | ₹ |
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Put ‘4’ mark for the nature of balance for the following.
| Account | Dr. Balance | Cr. Balance |
| 1. Capital A/c | ||
| 2. Goodwill | ||
| 3. Bank Overdraft | ||
| 4. Bills Receivable | ||
| 5. Creditors | ||
| 6. Drawings | ||
| 7. Advertisement | ||
| 8. Prepaid Rent | ||
| 9. Outstanding Salary | ||
| 10. Bad debts |
