What is Closing Balance
What is Closing Balance
The closing balance means a balance as on a particular date. Accounting language if a person purchase or sale more then one time in a particular time or in a accounting year need to create a ledger in his name. A ledger has generally four columns in which debit or credit is compulsory. Debit means he/ she /it need to pay and credit mean he/she/it will take from us. In simple word we can say the debit or credit balance of a ledger account at a particular time or year end is called closing balance.