After Net Income or Loss is entered on the end-of-period spreadsheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Question

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This is because the Balance Sheet is based on the accounting equation, which requires that assets must always equal liabilities plus equity. Therefore, the debit column total (which represents assets and expenses) must equal the credit column total (which represents liabilities, equity, and revenues) to ensure that the equation is balanced. The Net Income or Loss is used to adjust the equity section of the Balance Sheet, which can affect the overall equality of the equation.

After Net Income or Loss Is Entered on the End-Of-Period