Difference Between Balance Brought Down And Balance Carried Down
Balance Carried Down (Balance c/d) vs Balance Brought Down (Balance b/d): What's the Difference?
If you're learning accounting, you've probably come across the terms Balance Carried Down (Balance c/d) and Balance Brought Down (Balance b/d) in ledger accounts. Although they look similar, they serve different purposes in the accounting cycle.
Understanding the difference between these two terms will help you read ledger accounts correctly and prepare financial statements with confidence.
What Is Balance Carried Down (Balance c/d)?
Balance Carried Down (Balance c/d) is the closing balance of a ledger account at the end of an accounting period. It represents the remaining balance after all transactions for the period have been recorded.
For example, if your Cash Account has a debit balance of $15,000 at the end of the financial year, that amount is shown as Balance c/d. It is the final balance before the books are closed.
The closing balances of permanent accounts—such as assets, liabilities, and equity—are reported in the financial statements for the current accounting period, including the Balance Sheet.
What Is Balance Brought Down (Balance b/d)?
Balance Brought Down (Balance b/d) is the opening balance of a ledger account at the beginning of a new accounting period. It is simply the same balance that was carried down at the end of the previous accounting period.
In other words:
Balance c/d at the end of one accounting period becomes Balance b/d at the beginning of the next accounting period.
This ensures continuity in accounting records from one period to another.
Balance b/d typically appears in permanent accounts such as:
Assets
Liabilities
Equity
These opening balances are carried forward because these accounts continue from one accounting period to the next.
Balance c/d vs Balance b/d
| Balance Carried Down (c/d) | Balance Brought Down (b/d) |
|---|---|
| Closing balance of the current accounting period | Opening balance of the new accounting period |
| Recorded at the end of a ledger account | Recorded at the beginning of a ledger account |
| Calculated after posting all transactions | Transferred from the previous period's closing balance |
| Used to close the current accounting period | Used to start the next accounting period |
| Appears before the ledger is closed | Appears after the new accounting period begins |
Which Comes First: Balance b/d or Balance c/d?
The answer depends on where you are in the accounting cycle.
Within a single ledger account for an accounting period:
Transactions are recorded throughout the period.
The account is balanced.
Balance c/d is entered to close the account.
At the start of the next accounting period, the same amount is entered as Balance b/d.
Therefore:
Balance c/d is written first when closing the current period.
Balance b/d appears first in the new accounting period because it is the opening balance.
This is why a new ledger account begins with Balance b/d and ends with Balance c/d.
How Balance c/d and Balance b/d Work Together
Balance Carried Down and Balance Brought Down are directly connected.
For example:
Cash balance on 31 December 2025 = $8,000 (Balance c/d)
Cash opening balance on 1 January 2026 = $8,000 (Balance b/d)
The amount does not change—it is simply transferred from one accounting period to the next.
This process maintains accurate and continuous accounting records.
Do All Accounts Have Balance b/d?
No.
When a business is newly established, there is no Balance b/d because there is no previous accounting period from which to bring forward balances.
In addition, temporary accounts such as revenue, expenses, and drawings/dividends are closed at the end of each accounting period. Their balances are not carried forward, so they do not normally have a Balance b/d in the next period.
Key Takeaways
Balance Carried Down (Balance c/d) is the closing balance of a ledger account at the end of an accounting period.
Balance Brought Down (Balance b/d) is the opening balance carried forward into the next accounting period.
The closing balance of one period becomes the opening balance of the next period.
Permanent accounts (assets, liabilities, and equity) usually have both Balance c/d and Balance b/d.
A newly formed business has no Balance b/d because there are no previous balances to carry forward.
Understanding the relationship between Balance c/d and Balance b/d is essential for maintaining accurate ledger accounts and ensuring continuity between accounting periods.
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