How would you know if bank in a trial balance is favourable or unfavourable ? [Archive]

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Joe 1

Mar 17, 2010, 11:49 PM

Hi

I'm trying to answer an assignment question .Can you please explain how would you know if 'bank' in a trial balance is favourable or unfavourable ?

ROLCAM

Mar 18, 2010, 01:13 AM

DEBIT BALANCE = Favourable.
CREDIT BALANCE = Unfavourable.

In the Balance Sheet the Debit Balance is a Current Asset.
In the Balance Sheet the Credit
Balance is a Current Liability.