 I welcome you to this session. In this session, we will discuss the last part of Unit 5 of Financial Accounting of Become First Semester. In the earlier videos, in the first video, we have discussed about journal. In the second video, we have discussed subsidiary books. In the third video, we have discussed about leisure and leisure posting. And in this last video of this particular unit, we will discuss leisure balancing. We have posted the transactions from journal to leisure and now how to balance the leisure or how to close a particular leisure account. The topics that we will cover in this particular session are the meaning of leisure balancing, then the procedure of balancing an account. It is also known as leisure balancing, then the important points in leisure balancing and the nature of leisure and leisure balances. So, let us move forward and first of all, we will see the concept of leisure balancing. Leisure balancing means ascertaining the net difference between debit and credit of an account. As we have posted the transactions from journal to leisure and in the leisure we have recorded both the debit and credit aspect of the transaction, now our purpose is to close the account or just to balance the account. Now in balancing an account, very simply we just deduct the leisure amount from the heavier amount in the leisure. Let us move with the procedure of leisure balancing with an example. Our example is we have two transactions. Number one, purchase goods for rupees 5000 on credit from XY Enterprise and the second transaction is goods returned to XY Enterprise for rupees 2000. So, first we purchase some goods from XY Enterprise, but because of some issues or the goods are not according to the order that we have given we have returned some goods. So, that is the whole situation. These transactions first have to be recorded in the journal. So, in the journal book we will record it as for the first transaction purchase account debit to XY Enterprise means purchase account is debited and XY Enterprise account has been credited with 5000. And in the second transaction as we return the goods a new account will come into scene, the transaction will be XY Enterprise account will be debited and the new account is two returns outward account. Returns outward account means the goods that we have returned to the party from whom we have purchased the goods on credit. So, returns outward account will be credited. Now, if we see the leisure posting and we will examine how transactions are posted to XY Enterprise. So, it is the leisure account of XY Enterprise. On the debit side we have written it as two returns outward account and on the credit side we have written as buy purchase account. It is as per the rules of leisure posting. Now, it is time to balance the leisure. If we see then which side is heavier it clearly gives us the indication that credit side is heavier. In the credit side the amount is 5000 means we purchase the goods for rupees 5000 on credit and we return goods worth rupees 2000 to XY Enterprise. So, the credit side the amount column is heavier and from that amount we will deduct the leisure amount means the amount written on the amount column of the debit side of XY Enterprise leisure. So, the balancing figure the resultant figure will be 3000 and it will be recorded on the leisure side means on the debit side. So, 3000 is written against balance CD. It is the closing balance. It is written as two balance CD. CD means carry it down. Now, the same thing is again written on the credit side as buy balance BD. BD means brought down. It is also known as opening balance. The amount will be same 3000. If you observe the closing balance is on 31st December. So, this is the debt you we usually follow for balancing the account. It may be any debts according to your needs of the business, but on the next day the immediate next day will be the opening balance means on the 1st of January our opening balance is rupees 3000 that is on the credit side. So, this is the procedure of balancing an account. Now, there are certain important points in leisure balancing. Let us have a look. If the total of both the debit and credit side of an account is equal the account will have no balance or it is a zero balance account. Means there is nothing to detect from any heavier amount to the leisure amount. So, there is no balance. Now, secondly if the total of the debit side is more then the credit side of the account the account will have a debit balance. Again if the total of the credit side is more then the total of the debit side then the account will have a credit balance. The we have the credit balance in our example means the balance BD. The opening balance is on the credit side that is why it is known as the account with credit balance. Similarly, if the balance BD means the opening balance is on the debit side then it will be known as the account with debit balance. Now, according to the nature there are certain leisure balances that we can easily detect. For example, assets account will always have debit balance. For example, suppose we have purchased machinery for our business. So, that machinery leisure will always source its balance as debit balance because it is an asset. Then in case of a liability account it will show credit balance. For example, bank loan. So, that is a liability and it will show credit balance. Then for revenue account it generally shows credit balance. For example, sales leisure of sales account. Sales will always show credit balance. Then expense account will always show debit balance. For example, purchase account. Purchase account will generally shows debit balance. So, these are according to the nature we can detect the what type of leisure balance it will have. So, let us sum up the session. In this session we have discussed the meaning of leisure balancing. Then the procedure of leisure balancing and in the procedure we have seen how to balance means how to detect from the heavier amount the leisure amount and the resultant figure is balance CD. So, that is the closing balance and we transfer it to the ah next day on the opposite side and it is known as opening balance. And we have also discussed that accounts with no balance means there is nothing to detect from debit side or credit side or from credit side to debit side. Then there may be some accounts with debit balance means the opening balance the balance biddy will be on the debit side. Then there will be some credit account means credit balance. So, those account will shows the balance biddy opening balance on the credit side. Then we have also discussed some accounts which generally shows a particular balance like the asset account shows debit balance. We have given the example of machinery it may be anything furniture it may be building it may be land etcetera. Similarly, the liability account will always shows credit balance and so on. So, this is all about the session and in this session we have covered the balancing aspect of leisure. Thank you. Thank you very much.