Buchsaldo

Buchsaldo, or ledger balance, is a term used in accounting to describe the amount shown as the current balance of a specific ledger account after all postings have been recorded. It is a running balance that reflects the cumulative effect of debit and credit entries in the double-entry system.

Calculation and forms: The Buchsaldo is computed as the sum of all debit entries (Soll) minus all credit entries (Haben) for the account. If this difference is positive, the account has a debit balance (Sollsaldo); if negative, a credit balance (Habensaldo). The sign and type of saldo depend on the nature of the account: asset and expense accounts more often carry a debit balance, while liability, equity, revenue, and other income-related accounts usually carry a credit balance.

Usage and reconciliation: Buchsaldo is used in financial reporting, closing entries, and internal control. It should align with external records during reconciliation, such as the bank’s Kontostand; timing differences can cause temporary discrepancies known as outstanding items or cash in transit.

Origin and context: The term is common in German-language accounting and in multinational enterprises employing German chart of accounts. It is distinct from Kontostand, which refers to the cash position reported by a bank or cash register, and from the general concept of balance (Saldo) in accounting.