True
If you do a Trial Balance and your Credits Equal your Debits, then more than likely your books are correct.In double entry accounting the debits and credits must balance or be equal.
A balance sheet should be equal debits and credits at the end of it. Your debits are what you spend. Money on expenses or just about anything. Credits is assets/money/capital credited to accounts. Credits must equal the debits.
credits exceeds the debits
The sum total of credits minus debits represents your account balance, indicating the amount of money available in your account. Credits are deposits or inflows, while debits are withdrawals or outflows. A positive balance means you have more credits than debits, while a negative balance indicates greater debits than credits. This figure is crucial for managing personal finances and ensuring you do not overspend.
Debits. Liabilities have credit balances so a debit will reduce such a balance.
If you do a Trial Balance and your Credits Equal your Debits, then more than likely your books are correct.In double entry accounting the debits and credits must balance or be equal.
A balance sheet should be equal debits and credits at the end of it. Your debits are what you spend. Money on expenses or just about anything. Credits is assets/money/capital credited to accounts. Credits must equal the debits.
credits exceeds the debits
The sum total of credits minus debits represents your account balance, indicating the amount of money available in your account. Credits are deposits or inflows, while debits are withdrawals or outflows. A positive balance means you have more credits than debits, while a negative balance indicates greater debits than credits. This figure is crucial for managing personal finances and ensuring you do not overspend.
Adding debits and credits of balance sheet including capital
Debits. Liabilities have credit balances so a debit will reduce such a balance.
the debits and credits equal in general ledger
The Account balance.
If unequal amounts of debits and credits are found in this step, the reason for the inequality is investigated and corrected before proceeding to the next step.
The amount of the debits must equal the amounts of credits
The debits and credits for ALL the T-Accounts must balance - if you had the same debits and credits to each T-Account, your trial balance would be all zeros. If you take all the T-Accounts you've used in making your journal entry(s) and add them up, if the total debits and total credits don't agree you're missing part of an entry.
done to check the equality of debits and credits