Final answer:
A debit balance of $1,560 on a general ledger represents an amount owed by the company. In accounting, a debit balance indicates that more assets have been debited than credited in the account.
Step-by-step explanation:
A debit balance of $1,560 on a general ledger represents an amount owed by the company. In accounting, a debit balance indicates that more assets have been debited (increased) than credited (decreased) in the account. To enter a debit balance of $1,560 on a general ledger, you would use the account name and debit the amount in the appropriate column. This helps maintain an accurate record of the company's financial transactions.
When setting up a T-account balance sheet for a bank, you'll list the bank's assets on one side (such as reserves and loans) and liabilities (including deposits) on the other. To calculate the bank's net worth, subtract the total liabilities from the total assets. In the given example, if a bank has deposits totaling $400, reserves of $50, government bonds worth $70, and loans amounting to $500, its assets would be its reserves plus bonds plus loans, and the liabilities are the deposits. After subtracting liabilities from assets, you find the bank's net worth.