1. The double entry system: balancing off accounts
by Wu Sau Ming & Kan Hoi Mei (4A)
During the month we sold a total of $444 goods to Tan, and have been paid a total of $444 by him. At the end of August, we balance off the account as follows:
444
444

2. The double entry system:
Closing balances
If an account contains only one entry on each side and they are equal, totals are unnecessary.
The correct procedure will be:

3. The double entry system:
Closing balances
If you add the figures you will see that the debit side adds up to $482 and the credit side adds up to $158. You should be able to see how the difference $314 (I.e. $428-$158) enters into the account.
Step 3:
Finally enter balance to
start off entries for the
following month.
Aug Balance c/d
482
482
Sep Balance b/d
Step 1:
Enter balance here so that
totals will be equal.
Step 2:
Now enter totals level with
each other.

4. If you add the figures you will see that
The double entry system:
Closing balances
Step 3:
Finally enter balance to
start off entries for the
following month.
If you add the figures you will see that
Step 1:
Enter balance here so
that totals will be equal.
Aug Balance c/d
364
364
Sep Balance b/d
Step 2:
Now enter totals level with
each other.

5. The double entry system: balancing off accounts
Suggested Accounts Web page:
Multiple Choice Questions
What was the balance on the following account on 30 June 2005?
A A debit balance of $849.
B A credit balance of $829.
C A credit balance of $849.
D There is a nil balance on the account.

6. The double entry system:
Closing balances
Try it again!
You will get better!

7. The double entry system:
Closing balances
Right!
You are best!