Question

Jamie posted all the journal entries into the ledgers. After the postings, Jamie realizes that the debit side of the travel account is greater than the credit side. What does this signify? there is a closing debit balance in travel account there is a closing credit balance in travel account there has been an error in posting, as the ledger should have no closing balance there has been an error in journal entry as credit side should be greater than the debit side

Answer 1

there is a closing debit balance in travel account

Answer 2

There is a closing debit balance in travel account

Explanation:

The travel account will always possess debit balance as it is an expense that we will pay at certain point of time.

Here, if Jamie realizes that the debit side of the travel account is greater than the credit side, this signifies that there is a closing debit balance in travel account. There is balance in Jamie's travel account that he needs to pay.