Unit 3

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi,

I've been given some additional questions and my mind has gone completely blank for unit3. The first 2 questions are quite simple but I can't figure out how to put in a sentence. Please can somebody help me. The questions are

How do you balance off an account?

and

Why do you balance off an account?

I really would appreciate it if somebody can help.

Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unit 3

    That is a tricky one to put into words!!

    How to balance off an account:

    I guess you could put something along the lines of adding up the debit and credit side. Whichever one is lower you work out the difference to make both sides the same amount to balance the account. Then whichever side the balance c/d is (the difference) you post it to the opposite side as a balance b/d which would carry it over to the next period.

    Why Do you Balance an Account:

    I guess it is to complete a period of accounts in the business. You close off that period and carry down the balance to start the next period.

    That is about as best as I can think to explain it - I hope this helps :)

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