BHUVAN

• Apr 20th, 2006

 

Balancing means equalizing DEBIT and CREDIT side and keep the balance of it in SUSPENSE A/C       

rikul

• Apr 24th, 2006

 

Balancing means equalising debit and credit side totals in a T-account.

If there is a deficit on either side that is, debit or credit a suspense account is opened with the balancing figure.

satya

• Aug 20th, 2006

 

Balancing means the  Ledger balances in individual capacity is equal to that of the consolidated balance in the GL.  This reflects your accounts health condition.

Monisha Rajendran

• Aug 22nd, 2006

 

Balancing in simple terms mean balancing your Debit and Credit side of any account be it Trading ac, Profit&Loss ac etc.

vasudeo007

 Profile Answers by vasudeo007 

• Aug 26th, 2008

 

The balancing, in strict sense, means tallying both the sides of any account and carrying forward balancing figure.In double entry book keeping system the books are supposed to tally automatically. But they may not tally. This can happen because of following errors:a) Error of omission andb) Casting errorerror of omission means that either the transaction is fully or partially omitted from entering in ledger. This may not affect Trial Balance but it may affect balance sheet.While casting error means arithmatical error while computing the totals of the accounts.So when you notice that all accounts are tallied but still trial balance is not tallied then investigation is required to find out the cause of the same. Till the time the cause is found out the difference is shown in Suspense Account.Presence of suspense account is taken as sign of lack of efficiency.I hope I answered the question well.Vasudeo.