Balance carried down
Also called: Balance c/d
What is a balance carried down?
To balance an account, add up each side and take the smaller total from the bigger one. The difference is the balance.
The balance is written on the smaller side as balance c/d, which means carried down.
Both sides then add up to the same total.
Example
An account has £1,200.00 on the debit side and £850.00 on the credit side. The balance c/d is £350.00, written on the credit side. Both sides now total £1,200.00.
Why it matters
It closes the account for the period. The same figure is then brought down on the opposite side, to start the next period.
Practise it
Practise it nowBalancing an account
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].