B/F & C/D

System

Hi Guys

I know is going to be a simple answer, but im a little confused with this :?

Why is B/F a credit and C/D a debit??

Thanks!!

System

Re:B/F & C/D

brought forward and carried forward can be both be either debits or credits.

For example says it the end of the year and your looking at the creditors control account account:

Total credits $500
Total debits $100

Thus to balance off the account you would need to put in a £400 pound debit so that the debits = the credits (this is the carried forward figure). You then want to bring that balance down to the new period as a credit so you credit the creditors ledger control with £400 (this is the brought forward figure)

It would work just the same if you had started with £500 in debits and $100 in credits only the carried down would be a credit and the brought forward would be a debit.

Its best to show this in a T account but you ant do that on here very well so I hope i've explained it ok.

Adrian

System

Re:B/F & C/D

Are you sure it's not just the terminology you're unclear about as I remember some people getting confused about this on my Foundation year?

b/f - brought forward - is the opening figure brought forward from a previous accounting period e.g. the sales ledger control opening debit figure taken from the month before. Sales account will have a credit opening b/f figure.

c/d - carried down - is the term for the "missing" figure calculated when balancing off an account.

b/d - brought down - is the figure that 'sits at the bottom' of the T account and will be on the opposite side of the c/d figure. This will also become the b/f figure for the next accounting period.

It is quite important that you remember these three terms though I wouldn't worry too much about it at this stage.

Robert

System

Re:B/F & C/D

Thanks Guys

It does all make, sense, but then its just getting it all together in my head :roll:

im starting to think il never get it!

System

Re:B/F & C/D

I was exactly the same Newbie - I thought I would never get the hang of balancing off accounts and b/f c/d.
One week I was sitting there wondering whether I would be able to cope and the week after I was flying through scenarios on T accounts, purchase ledger and sales ledger.
I know it's an old cliche of "It'll all pop into place" but honestly... it does.

Good Luck
J

System

Re:B/F & C/D

Thanks 19051984... it does help to hear people say that. And im glad that I have found this forum.

I cant wait for the day I can start answering other peoples questions!!