Prepare to pass & SAVE $1100!

Credit Balance

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.

There is currently no content classified with this term.

Get instant access to step-by-step instructions on how to apply and sit for the CPA Exam.