Q.From the transactions given in Question 1 above, prepare Rent Account, Salaries Account and Drawings Account, and explain why the treatment of the Drawings Account differs from that of the Rent and Salaries Accounts.

The closing balance of a ledger account this year becomes the opening balance of the next year — option (b).

How balancing carries forward:

• At the end of the year each ledger account is balanced; the difference is written as balance c/d (carried down) to make both sides equal.
• This same balance is then written on the opposite side as balance b/d (brought down) at the beginning of the next accounting year. …

Determining the net amount from the totals of the debit and credit columns of a ledger account is called balancing, so the answer is (c).

In the Tamil Nadu HSC Class-11 Accountancy syllabus, once transactions are posted to a ledger account, its two sides are totalled and the difference is found to know the closing position of that account. This process is called balancing the account.

Distinguishing the options:

• (a) Journalising — recording a transaction first in the journal; not this.
• (b) Casting — totalling the amount columns; the difference step goes beyond mere totalling. …