Q.Closing balance of the current year in the ledger account is the opening balance of the ________.

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. …