The difference between the amounts entered as increases in an account and those entered as decreases is called the balance of the account.
In accounting, each transaction affects the balance of an account. Increases are typically recorded as debits in asset accounts or credits in liability and equity accounts, while decreases are recorded conversely. The overall balance is determined by taking the total of all increases and subtracting the total of all decreases, which gives a clear idea of the financial standing in that account. Understanding this balance helps individuals and businesses monitor their financial health effectively.