In a standard ledger account, on which side are debit entries recorded?
Correct answer: A. Left-hand side
- A. Left-hand side
- B. Right-hand side
- C. Upper section
- D. Lower section
Explanation
Debit entries are recorded on the left-hand side of a ledger account, while credit entries are recorded on the right-hand side. The left and right layout helps compare the two sides and determine the account balance.
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About Ledger Accounts and the Trial Balance
Ledger accounts collect transactions under individual headings and use debit and credit sides to determine balances. The trial balance lists those balances to check arithmetical agreement before financial statements are prepared, but it does not reveal every error, such as complete omission, compensating errors or entries made in the wrong account.
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