Carried Down Balance (Balance c/d) Indicates Which Balance
Carried Down Balance, which is written as Balance c/d shows either the Debit Balance or Credit Balance depending upon higher sides i.e., if the amounts of debit side is more than credit side in a Ledger Account, then it shows debit balance and if the amounts of credit side is more than the debit side in a ledger account, then it shows credit balance as debit side needs more amount to become equal to credit side.
Balance Carried Down of Different Types of Accounts will be continued to be transferred to the next Step of Accounting Cycle unless the the accounting cycle completes.
For example, Office Equipment is a Fixed Asset, which has normal debit balance as its debit side is more than credit side. So, the balance carried down or balance c/d is written on credit side as shown below:
ABC Company
Office Equipment Account
For the period 1-1-2019- 31-21-2019
Date Rs. Date Rs.
1st January Cash 50000
31st December Balance c/d 50000
_______ _______
Total 50000 50000
_______ _______
_______ _______
The Balance c/d of Rs. 50000 will be transferred to Balance Sheet as on the last date of the accounting period.
Note: From Balance c/d of office equipment, the accumulated depreciation for building is deducted on balance sheet.
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