When creating a formula to balance a checkbook, you subtract the total debits (or expenses) from the total credits (or income) to find the current balance. The general formula can be expressed as:
Current Balance = Previous Balance + Total Credits - Total Debits
Where:
- Previous Balance is the balance carried over from the previous statement.
- Total Credits are the total amounts of money deposited or received (e.g., salary, refunds).
- Total Debits are the total amounts of money spent or withdrawn (e.g., checks written, fees).
In summary, you subtract the total debits/expenses from the total credits/income in your checkbook balancing formula.
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