Q.What do you mean by balancing a ledger account? Explain the meaning of 'Balance c/d' and 'Balance b/d'.

Once every transaction for a period has been posted, the account still needs to be brought to a single closing figure.

Balancing a ledger account means totalling both its sides, finding the difference between the two totals, and entering that difference on the side with the smaller total so both sides become equal. This entered difference is called "Balance c/d" (carried down) — the closing balance for the period. It is then brought down on the opposite side, at the start of the next peri …

Balancing a ledger account is the process, carried out at the end of a period, of totalling both sides of the account and finding the difference between them, so that a single closing figure for the account is obtained.

Steps in balancing

1. Total the Debit side and the Credit side of the account separately.
2. Find the difference between the two totals.
3. Enter this difference on the side with the SMALLER total, with the words "To Balance c/d" (on the debit side) or "By Balance c/d" (on the credit side) — this makes both sides equal.
4. Write the equal total on both sides, ruled off above and below.
5. Bring the balance down on the OPPOSITE side, dated the first day of the next period, with the words "By Balance b/d" or "To Balance b/d" as the case may be.

Balance c/d (Carried Down): the difference between the two sides of a ledger account for a given period, inserted on the side with the smaller total purely to make both sides agree in total. It represents the account's closing position at the end of that period — e.g. how much cash remains, or how much a debtor still owes. …

Students sometimes think 'Balance c/d' and 'Balance b/d' are two different amounts — they are always the SAME figure, just entered at two different points in time: c/d closes off the old period on …