Chapter 3 - Steps Involved To balance Accounts

Question 2

What is the first step of balancing an account ?

Answer 2

The entries on the Debit side and the Credit side each need to be totalled

Question 3

What is the second step of balancing an account ?

Answer 3

Work out the difference of the two totals and put the difference on the side of the smaller total on the next available line

Note that this should have the description of balance carried down or balance c/d

Question 4

What is the third step of balancing an account ?

Answer 4

Draw a line and enter the largest total from the credit or debit side underneath also draw another line underneath the total so there should be a double line (one above one below)

Note that this should be done on both the Credit and Debit side

Question 5

What is the fourth step of balancing an account ?

Answer 5

Underneath the double lined total, on the side with the largest total put the difference in the next column with a description of balance brought down or balance b/d