Debit balance
In one sentenceWhat remains in an account when the total of its debit side exceeds the total of its credit side; it is the normal balance of assets and expenses.
Simply put
You add up all the amounts on the debit side and all the amounts on the credit side, then subtract the smaller from the larger. If the debit side is larger, the account has a debit balance.
Cash, inventory, customers and expenses usually have debit balances. If a cash box account shows a credit balance, this is an error: you cannot pay out of the cash box more than came into it.
Worked example
The cash account of a clothing shop during a month.
Total receipts (debit side)90,000 SAR
Total payments (credit side)65,000 SAR
Debit balance: 90,000 − 65,00025,000 SAR
Formula: Debit balance = Total debits − Total credits (if debits are larger)
Don't confuse it with
DebitDebit is a side of the entry or account, while a debit balance is the result of comparing the two sides.