Confused About Marking Debit or Credit on Balance Confirmation? Let's Discuss!

We are providing equipment on rent to our customer. Now, they sent me a letter for balance confirmation. My company name is ZAHID ALI EQUIPMENTS, and the customer name is ABC W.L.L. Our auditors, M/S DEFGH, are currently engaged in the audit of our accounts for the financial year ended 31/12/2009. Kindly confirm directly to our auditor your balance with us as at 31/12/2009. The below confirmation slip should be filled in and faxed back to our auditor.

CONFIRMATION

We confirm that the balance due to us by ABC W.L.L as at 31/12/2009 is Debit/Credit: 450,000/-. Can you tell me where I will tick mark on Debit or Credit?

It really depends on the balance on your balance sheet or the balance that has to be paid by the vendor or client. If it is the balance you have, then "debit"; if it is the amount to be paid, then "credit".

I think you had provided equipment to ABC, so you're going to receive from them. If there are no advance payments, then it will be debited.