How do you find the account balance of a T account?

Question

Combine the total number of debits with the total number of credits.

Add credits and debits together, and then multiply the sum by the number of total entries.

Add all of the debits, and then add all of the credits. Then, subtract the smaller number from the larger one.

Divide the total amount of debits by the total amount of credits.

Answer 1

To find the account balance of a T account, you should add all of the debits, and then add all of the credits. Then, subtract the smaller number from the larger one.

Here's a step-by-step summary:

1. Add up all the debit entries.
2. Add up all the credit entries.
3. Subtract the total of the smaller side (debits or credits) from the total of the larger side.
4. The result can be labeled as the account balance, indicating whether the account has a debit balance (if debits are larger) or a credit balance (if credits are larger).

This method gives you the accurate balance of the account in the T account format.