how to calculate the balance of the account

how to calculate the balance of the account

involved in a double-entry accounting system

To calculate the balance of all the accounts involved in a double-entry accounting system, we must first determine the net debit or credit of each account. To do this, total the debits and credits for each account, then subtract the total credits from the total debits. The resulting value will be the account's net debit or credit. Once the net debit or credit of each account has been determined, calculate the total balance of all accounts by adding the net debit or credit of each account. The value obtained will be the total balance of all accounts involved in a double-entry accounting system.