Ending balance definition

What is the Ending Balance?

The ending balance is the net residual balance in an account. It is usually measured at the end of a reporting period, as part of the closing process. An ending balance is derived by adding up the transaction totals in an account and then adding this total to the beginning balance. For example, if an account has a beginning debit balance of $1,000 and then incurs $500 of debits and $250 of credits within a reporting period, then its ending balance will be $1,250.

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