Balance brought down
Also called: Balance b/d
What is a balance brought down?
When an account is balanced, the balance is carried down on the smaller side.
It is then brought down on the opposite side, as balance b/d, to start the next period.
If the debit side was bigger, it is a debit balance. If the credit side was bigger, it is a credit balance.
Example
An account has £1,200.00 on the debit side and £850.00 on the credit side. The balance of £350.00 is carried down on the credit side. It is brought down on the debit side, so the next period starts with a debit balance of £350.00.
Why it matters
The side it sits on says what it is. A debit balance brought down in the cash book means there is money in the bank. A credit balance there is an overdraft.
Practise it
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].