Chapter 2 — The Recording Process

The Balancer

Learning Outcome Covered: 2.2c

Calculate T-account balances! Add up each side and find the difference.

📥 Debit
📤 Credit
⚖️ Balance

🎯 Objective

Look at the T-account, add up the debits, add up the credits, then find the ending balance and select whether it is a Debit or Credit balance.

🎮 How to Play

  1. Add up all the numbers on the left (Debit) side
  2. Add up all the numbers on the right (Credit) side
  3. Subtract the smaller total from the bigger total
  4. Enter your answer using the number pad
  5. Select whether the balance is a Debit or Credit
  6. Press Submit to check your answer
⭐ How stars work: more stars = a better result. 3 stars = no mistakes at all.

📚 Calculating Account Balances

📖 What You Will Learn

After posting many transactions, you need to find the account balance. This is called "footing." The balance tells you how much is in the account now.

📝 The 3 Steps to Find a Balance

Step What To Do Example
1 Add up all the Debits (left) 1000 + 500 = 1500
2 Add up all the Credits (right) 200 + 100 = 300
3 Subtract: Bigger - Smaller 1500 - 300 = 1200

The balance goes on the side with the BIGGER total.

💡 Key Concept: Balance Types & DEALER

Debit Balance = When the left side (Debits) is larger. Expected for the D-E-A side of DEALER: Dividends, Expenses, Assets.

Credit Balance = When the right side (Credits) is larger. Expected for the L-E-R side of DEALER: Liabilities, Equity, Revenue.

Sanity check: The DEALER strip at the top of the game screen tells you the normal side. Your computed balance side should usually match it — if it doesn't, re-check your math.

💰 Example 1 - Cash Account (Debit Balance)

💳 Example 2 - Accounts Payable (Credit Balance)

💡 Key Points to Remember

  • The balance is always a positive number
  • The balance goes on whichever side is bigger
  • If only one side has numbers, that total is your balance

🚩 Abnormal Balances — When Something's Off

Definition: An abnormal balance is an account whose balance sits on the unexpected side of DEALER. The math is what it is — but the result lands on the "wrong" side relative to the account's normal balance.

Common examples:

  • Cash with a credit balance → bank overdraft (account is overdrawn) — or a posting/recording error.
  • Accounts Receivable with a credit balance → a customer overpaid, or a write-off was posted to a paid account.
  • Sales Revenue with a debit balance → returns and refunds exceeded sales for the period — or an error.
  • Accumulated Depreciation with a debit balance → ERROR. It's a contra-asset; normal balance is credit.
  • Drawings or Dividends with a credit balance → ERROR. Both are always debit-normal (the D in DEALER).

Auditor's red flag: Abnormal balances are a real-world warning sign. Auditors scan trial balances for them as a quick check — always investigate before assuming the number is correct.

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