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Closing accounts -whats the difference between c/d + b/d and c/f + b/f

alexmitchellalexmitchell Feels At HomeRegistered Posts: 58
in AAT Level 2 (Level 5 in Scotland)
My book seems to switch between the different terms when closing accounts. Does it make any difference which ones I use?

I was under the impression one set of terms were used when closing accounts off monthly and one for weekly. ie b/f -brought forward, you would use on the opening balance for a new month and b/d -brought down, would be for a new week but in the same month.

Can anyone shed any light on this?



thanks!

Comments

  • taskeytaskey Font Of All Knowledge Registered Posts: 1,800
    i don't think it matters which you use as long as you are consistent.

    tracy
  • alexmitchellalexmitchell Feels At Home Registered Posts: 58
    oh ok

    thanks!
  • GWP83GWP83 Just Joined Registered Posts: 2
    I think if your bringing the balance from a different page you use c/f and b/f but if your bringing the balances down on the same page you use c/d and b/d. If im wrong im sure someone will correct me.
  • blobbyhblobbyh Font Of All Knowledge Registered Posts: 2,415
    Funny how this one comes up periodically! I've always logically thought of these as follows:

    C/D: carry down (IMO present tense rather than past tense carried down) is the balancing figure in the T account
    B/D: brought down is the C/D from above and which will also be the C/F (carrying/carried forwards) figure for the next accounting period
    B/F is the opening figure in the new period being the C/F figure brought forwards from the previous period.
  • dziumbrauskaitedziumbrauskaite Feels At Home Registered Posts: 42
    I do agree with GWP83. :)
  • grovlukegrovluke New Member Registered Posts: 5
    blobbyh wrote: »
    Funny how this one comes up periodically! I've always logically thought of these as follows:

    C/D: carry down (IMO present tense rather than past tense carried down) is the balancing figure in the T account
    B/D: brought down is the C/D from above and which will also be the C/F (carrying/carried forwards) figure for the next accounting period
    B/F is the opening figure in the new period being the C/F figure brought forwards from the previous period.

    i would have to agree with this statement
  • NikdougNikdoug Feels At Home Registered Posts: 69
    I agree with both blobbyh and GWP83. C/D and B/D are used when balancing t accounts. B/F and C/F can be used for carrying figures forward to the next accounting period and also onto the next page if you run out of room.
  • gonazgonaz Registered Posts: 1
    b/d shows a profit from previous accounting period which comes as first entry on the left hand side of the ledger account and c/d shows a loss from last account period which comes as a first entry on the liability side or credit side or rather right hand side of the new ledger account.
    b/f shows a loss of the current accounting period and is entered on the left hand side to balance the debit side and c/f shows a profit of the existing accounting period and is entered to the liability side to balance tha account which will be b/d to the next accounting period........so these term are not the same as others think
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