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—...