What Is Balance B/D And Balance C/D? - Accounting Capital

Balance B/D and Balance C/D

In bookkeeping, Balance B/D and Balance C/D are terms used for balancing and closing of ledger accounts from the current period to the following period.

Balance B/D – is the balance brought down as opening balance of a ledger pulled from the previous accounting period.

Balance C/D – is the balance carried down as the closing balance of a ledger pushed to the next accounting period.

If Debit side > Credit side it is called Debit Balance

If Credit side > Debit side it is called Credit Balance

 

Example – To Balance C/D and By Balance B/D

To Balance c/d – In a ledger account when Credit side > Debit side the difference in balance is inserted on the debit side to balance the account, the differential amount is denoted as “To Balance c/d”.

By Balance b/d – In the following accounting period closing credit balance of previous period (To Balance c/d) is brought down to the credit side of ledger account, this amount is the opening balance of next period and is denoted as “By Balance b/d”.

Related Topic – What are Closing Entries?

 

Example – By Balance C/D and To Balance B/D

By Balance c/d – In a ledger account when Debit side > Credit side the difference in balance is inserted on the credit side to balance the account, the differential amount is denoted as “By Balance c/d”.

To Balance b/d – In the next accounting period closing debit balance of previous period (By Balance c/d) is brought down to the debit side of ledger account, this amount is the opening balance of next period and is denoted as “To Balance b/d”.

Asset, Liability & Capital accounts are balanced whereas Revenue and Expense accounts are not balanced.

 

Short Quiz for Self-Evaluation

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Question 1

What does Balance B/D stand for?* Balance Brought Down Balance Book Down Balance Brought Deep

Answer 1

Right

Great! – You’ve scored 1.

Wrong

Balance B/D stand for Balance Brought Down.

Question 2

What does Balance C/D stand for?* Balance Carried Deep Balance Coming Down Balance Carried Down

Answer 2

Correct

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Balance C/D stand for Balance Carried Down.

Question 3

If Debit side > Credit side it is called Debit Balance* False True

Answer 3

Correct

Great! – You’ve scored +1

Wrong

If Debit side > Credit side it is called Debit Balance

Question 4

If Credit side > Debit side it is called Credit Balance* True False

Answer 4

Correct

Great! – You’ve scored +1

Wrong

If Credit side > Debit side it is called Credit Balance

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> Read Balance B/F and Balance C/F