answersLogoWhite

0


Best Answer

The credit balance is a positive real number and as such it should not have a minus sign in front.

Accounting:

If this is about an asset, then this is an amount you owe (you do not have and you are liable to) otherwise if this is for a liability, then this is an amount others owe to you. Example: a credit balance in a tellers (cashier) account is not having a minus in front of it (since it is a positive number) but it means that the cashier is owing money to the till, since the cashier's account is an asset.

If you want to reverse a credit balance then you CREDIT again the same amount with a minus in front (you shall NOT debit the same amount, as this is another transaction and not a reversal). Example:

Account 1

Db______Cr

..............100

................20

..............270

................10

----------------

..............400 <-- This is a credit balance (it shall be unsigned).

Reverse transaction No 3 from Account 1 which concerns a loan (just an example)

Account 1_____________Loans

Db.......Cr_____________Db......Cr

........-270 reversal .......... 270

Now, this is the image of the same account

Account 1

Db_______Cr

................100

..................20

................270

..................10

...............-270

------------------

................130 <-- This is the new credit balance (also unsigned).

So.

A credit balance never has a minus in front. A general ledger account usually can have reversals which are negative amounts on the credit (or debit) side, but this is not called 'credit balance'

A balance can sometimes drop below zero, in which case (a) it will have a minus in front and (b) it will not be a 'credit' balance of course, but rather a debit one.

Hope this helps.

PS

dots (....) and underlines (____) only added for visibility/readability purposes they are not contributing to the answer - Thank you.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Does a credit balance have a minus sign in front?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What does a minus sign in front of a bill balance mean?

It's a credit. It means you paid too much, and they are holding the money you paid in your account. They will use it to help pay your next bill.


Do all excel formulas start with an sign?

All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.All formulas begin with the equals sign. It is also possible to start with a plus sign, a minus sign or an @ sign, but an equals sign will be automatically put in front of it.


What is the absolute value of nine with a minus sign in front of it?

9


-32-19 what does it equal?

-13


What does it mean if your account has a minus sign?

IT most likely means that your overdrawn on your account and its at a negative balance.


How do you subtract 500004 from 360262?

Subtract 360262 from 500004 and put a minus sign in front of the answer.


How do you evaluate absolute values?

In the simplest case, if there is a minus sign in front of a number, just take it away. If there is a plus sign, or no sign, no change is required.


What is 19 divided by -37?

56


How do you find the y-intercept of a function if it has a minus sign in the front?

You can divide the whole equation by -1


How do you solve X squared equals 9 divided by 100?

0.09


When do you know when the integers are positive and negative?

If the number is zero, then it is neither positive nor negative.For all other integers: If there is a minus sign, "-", before the integer, then it is negative. If there is a plus sign, "+", before the integer or no sign at all, then it is positive.


How do you know if the discriminant is negative?

You calculate the value of the discriminant. If the answer is less that zero, that is, if the answer has a minus sign in front then it is negative.