Types of Balances in Accounting

This text discusses the different types of balances in accounting, including debit balances, credit balances, personal accounts, real accounts, and nominal accounts. It also explains the meaning of these balances and how they are used in accounting.

Summary

A debit balance is created when the debit side of an account is heavier than the credit side. A credit balance is created when the credit side of an account is heavier than the debit side. Personal and nominal accounts may have debit or credit balances. Real accounts always have debit balances.

Questions

1. If the debit side of an account is heavier than its credit side, the balance is called debit balance.
2. The left hand side of a Ledger Account is used as a debit side and the right hand side is used as a credit side.
3. Personal and nominal Accounts may have debit or credit balance.

Answers

1. Debit balance
2. Debit side, credit side
3. Personal, nominal