# Account balance

This is categorised as an [account metric](/xnUSdbbaQS-wn0KmIYRh-Q).

The mutual credit balance of a club member $M_i$ is denoted $b_i$ and in the absence of a [central clearing process](/V16aQr1MT8ep0oM3Y4RSyQ) is the difference between [gross income](/tkEQAtNMTtWFnRDexj83QQ) and [gross expenditure](/4JynudQ7Srq5-3oHmGx8dg) (in MCU) to date.

If a central clearing process is in place (this is a core part of the [Trade Credit Club](/Q93p0MdKRr-D07uK3iAVHg) model), then MCU balances may be periodically brought in line with agreed [clearing limits](/AYLZ5n-WTG6eiRVSlh0qOw). In this case, the account balance can be most easily calculated by identifying the most recent central clearing event the member participated in and taking the member's clearing limits at that point in time as baselines, i.e. adding the difference between gross income and gross expenditure to the member's positive or negative clearing limit as appropriate. See the 'system payment amounts' section in [late payment](/iIVkdpz_S76a_6FexHZWAw) for an example.