After net income or loss is entered on the work sheet, the debit column total must equal the credit column total of the Balance Sheet columns.

Question

Quizplus · Accepted Answer

This is because the Balance Sheet columns must show a balance, meaning that the total amount of assets must be equal to the total amount of liabilities and equity. The net income or loss is taken into account in the computation of the equity section, so the total debits and credits must still be equal.

After Net Income or Loss Is Entered on the Work