The debit or credit balance on a ledger at the end of an accounting period, which will appear on the balance sheet at that date and be carried forward to the next accounting period.
A debit balance is the balance of an account where the total debit entries exceed the total credit entries. This typically indicates expenditures or assets on a company's financial statements.
An offset account reduces the gross amount of another account to derive a net balance, such as a fixed asset account that is offset by a depreciation account.
A prepayment, also referred to as a payment in advance, is a payment made for goods or services before they are actually received. In accounting, it is treated as a deferred debit under the accruals concept and is shown as a debit balance under debtors in the current assets section of the balance sheet.
An agreement between the parties involved to offset one debt against another or one loss against a gain. Commonly used in banking to balance credit and debit balances across different accounts.
