Ledger Question:

To know the net effect of all the business transactions recorded in the ledger account, the accounts need to be balanced. Thus, Balancing of Ledger Account means the balances of Debit and Credit side should be equal and this involves following steps:

-First total of both the sides are taken.

-Secondly difference between the totals of both the sides is calculated.

-If the debit side is in excess to the credit side then place the difference on the credit side by writing By Balance c/fd.

- If the total of credit side is in excess to the debit side, place the difference on the debit side by writing To Balance c/fd.

-After placing the difference on the appropriate side, make sure the totals of both the sides are equal.