Balance c/d and balance b/d ??

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Something basic I am sure, but what is the difference between balance c/f and balance b/f ?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Balance c/d and balance b/d ??

    As far as I'm aware, absolutely none at all since it's the second letter that's more important.

    Brought forward/carried forward is the opening balance from the previous accounting period. My own preference is for b/f but this is entirely up to you.

    Whereas,

    Carried down is the balancing figure in the T account while brought down is the very same figure that appears on the opposite side at the bottom of the T account and becomes the bf/cf opening figure for the next accounting period.

    Regards,

    Robert
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Balance c/d and balance b/d ??

    Thanks Robert, I see, so brought or carried forward balances are of balances from previous period. Carried or brought down balances are from the accounting period in question.

    So carried balance is the balancing figure added to the lesser side of the ledger. Brought ones are the actual balance ot the account. Surely there must be a principal for which annotation to use for balances going forward, brought or carried, not just preference? Thinking outloud . . .

    Perhaps if the account is balancing as it would be expected e.g. a debit balance for an asset ledger then the balance is brought forward; and if the account is overdrawn e.g. a debit balance with a creditor then the balance is carried forward. I like that theory!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Balance c/d and balance b/d ??

    There is an easy way to remember these.

    b/d begins the account
    c/d closes the account

    Does that help.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Balance c/d and balance b/d ??

    My own understanding is that you carry forward figures to the next period and bring forward figures from the previous one.

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