Business, Legal & Accounting Glossary

Definition: Balance


What is the dictionary definition of Balance?

Dictionary Definition

  1. uncountable a state in which opposing forces harmonise; equilibrium
  2. uncountable mental equilibrium; mental health; calmness, a state of remaining clear-headed and unperturbed
  3. Something of equal weight used to provide equilibrium (literally or figuratively); counterweight

Full Definition of Balance

1. The amount of money in an account, equal to the net of credits and debits at that point in time for that account. also called account balance. 2. The amount remaining to be paid toward an obligation. For example, a homeowner who has paid down $25,000 of a $100,000 mortgage has a principal balance of $75,000. Balance also refers to the appraisal principle that states the greatest value in a property will occur when the type and size of the improvements are proportional to each other as well as the land.

In accounting, the balance of an account is defined as the sum of all debits and credits to that account. An account balance can be either current, including all such debits and credits, or defined for a period ending earlier. For example, the balance due on an invoice reflects the total of all charges accrued and all payments recorded to date. To balance an account is to determine the balance by recording and tallying all applicable debits and credits. A balance sheet is a part of the financial statement for a company that shows the aggregate balance for both assets and liabilities, and therefore owners’ equity. The term balance is also used to describe national trade accounts, as in trade balance or balance of payments.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Balance. Payroll & Accounting Heaven Ltd.
August 08, 2022
Chicago Manual of Style (CMS):
Balance. Payroll & Accounting Heaven Ltd. (accessed: August 08, 2022).
American Psychological Association (APA):
Balance. Retrieved August 08, 2022
, from website:

Definition Sources

Definitions for Balance are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.