Credit Balance

Accounting Dictionary

Credit Balance

When the dollar amount of the credit or right side entries to a T account is more than the debit or left side entries, we say the account has a credit balance.

Susan credited accounts payable for $6,000 and debited accounts payable for $4,000. Since $6,000 is $2,000 more than $4,000, we would say that accounts payable has a credit balance of $2,000.

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