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Define the term Balance, Balancing Debit balance and Credit Balance

 The difference between the totals of two sides of an account is its balance. The balance is written of the lesser side to make the two sides equal. 

For example:

Total of Dr. Side Rs.20000

Total of Cr. Side Rs.15000

Balance Rs.5000

1. Balancing 

The process of equalizing the two sides of an account is known as balancing.


2. Debit balance

While finding the balance if total of debit side is greater than that of credit side, the difference is named as debit balance.

 For example:

Total of Dr. Side of an account Rs.80000

Total of Cr. Side of an account Rs.70000

Balance (Debit balance) Rs.10000

3. Credit balance

While finding the balance if total of credit side is greater than that of debit side, the difference is named as credit balance.

For example:

Total of Dr. Side of an account Rs.35000

Total of Cr. Side of an account Rs.50000

Balance (Credit Balance) Rs.15000


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