Difference Between Balance Brought Down And Balance Carried Down

Balance Carried Down, which is written in short form as “Balance c/d” in Ledger’s Accounts, is closing or ending balance of Different Types of Accounts for the current accounting period while Balance Brought Down, which is written as “Balance b/d” in Ledger’s Accounts, is your business’s opening balance of different types of accounts transferred from previous accounting period. It is actually the closing balance of the last closing accounting period.

Balance Brought Down (Balance b/d) shows opening balances of Assets, Liabilities and Equity accounts transferred from previous accounting period while Balance Carried Down (Balance c/d) is the closing balances of Assets, Liabilities and Equity at the end of the current accounting period.

Balance Carried Down of different types of accounts is shown in the Financial Statements (Income Statement, Balance Sheet, Statement of Retained Earnings and Statement of Cash Flows) of the current closing accounting period while Balance Brought Down related to different Accounts is shown in opening financial statements of the new accounting period.

The balance carried down interacts with balance brought down when ending or closing balances of Permanents Accounts become the opening balances on the next accounting period and these beginning balances are shown with balance brought down in the specific ledger accounts.

Both Balance c/d and Balance b/d are shown in Ledger’s Accounts for the accounting period. However, if there is a stage of starting a new business, then there is no balance brought down for the current accounting period.