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Question
What is the balancing of an account?
Solution
Balancing means that the debit side and credit side amounts are totalled and the difference between the total of the two sides is placed in the amount column as ‘Balance c/d’ on the side having lesser total, so that the total of both debit and credit columns are equal.
When the total of the debit side is more than the total of the credit side the difference is debit balance and is placed on the credit side as ‘By Balance c/d’. If the credit side total is more than the total of the debit side, the difference is credit balance and is placed on the debit side as ‘To Balance c/d’.
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The following balances appeared in the books of Vinoth on Jan 1, 2018
| Assets | ₹ | Liabilities | ₹ |
| Cash | 40,000 | Amount due to Vijay | 10,000 |
| Stock | 50,000 | ||
| Amount due from Ram | 20,000 | ||
| Machinery | 40,000 |
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| Assets | ₹ | Liabilities | ₹ |
| Cash | 1,00,000 | Amount due to Anush | 40,000 |
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| Amount due from Rohit | 10,000 | ||
| Furniture | 10,000 |
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Give Journal entries for the following transactions and post them to Cash a/c and Sales A/c.
| 2017 Aug. | Particulars | ₹ |
| 10 | Sold goods and cheque received but not deposited | 30,000 |
| 14 | Sold goods on credit to Gopi | 12,000 |
| 20 | Received cash from Gopi | 12,000 |
