After posting all transactions in manual accounting , we add debit side and credit side amount . After this we compare both side . By comparing , we can calculate difference between debit and credit side of a particular account .So, this difference will be the balance of ledger account and this process is called balancing of a ledger account .
Balance of account may exist in three situation :-
Situation No. 1
Where debit side total is equal to credit side total of account , then balance will be equal to nil .
Situation No. 2
Where total of debit side is more than total of credit side of account , then it will be Debit balance .
Situation No. 3
Where total of debit side is less than total of credit side of account , then it will be Credit balance .
Balance of account may exist in three situation :-
Situation No. 1
Where debit side total is equal to credit side total of account , then balance will be equal to nil .
Situation No. 2
Where total of debit side is more than total of credit side of account , then it will be Debit balance .
Situation No. 3
Where total of debit side is less than total of credit side of account , then it will be Credit balance .
