-Pushpender Kumar Academic Content Writer at Edumarz
Ledger accounts are balanced periodically. Generally, ledger accounts are balanced at the end of the accounting year to ascertain the net position of each amount.
Balancing an account means a total of both sides (debit and credit) of an account and shows the difference between them on that side which is short.
The difference between both sides of an account is denoted by “balance c/d“ words.
If the debit side of an account is more than the credit side the difference will be shown on the credit side and if the credit side is more than the debit side the difference will be shown on the debit side.
The accounts of expenses or losses and gains or revenues are not balanced but are closed by transferring to Trading Account and Profit and Loss Account.