# What is the Difference between c/d and b/d?

Registered Posts: 3 New contributor ?
Can someone help me please, I need to know what the difference between carried down (c/d) and bought down (b/d) is?

Also what do they both mean please?

Thanks

• Registered Posts: 172 ? ? ?
brought down (b/d) or carried down (c/d) is always the opening balance.

brought forward (b/f) or carried forward (c/f) is always the closing balance... which is the amount necessary to 'balance the books'
• Registered Posts: 2,415
I tend to see it the other way round Sebastian. Also recently discussed here;

• Registered Posts: 2,492
Agree with the punk rocker
• Registered Posts: 172 ? ? ?
apologies to all. i stand corrected.

incidentally, osbourne books use b/d to open, and c/d to close. i can't remember what kaplan and bpp use ?!?

i remember always using b/d and c/f just so that i didn't get confused between the two.
• Registered Posts: 1,624
a osbourne books use b/d to open, and c/d to close.

That's what I always have done.

I really don't think it matters one way or another though
• Registered Posts: 981
i have always done

carried down, the amount needed to balance the accounts .....then this is transfered to the other side of the T account as a brought down
• Registered Posts: 107 ? ? ?
Can someone help me please, I need to know what the difference between carried down (c/d) and bought down (b/d) is?

Also what do they both mean please?

Thanks

Hi I hope this helps...............

The c/d (carried down) figure expresses the difference between the two sides of the T account and appears within the account at the bottom right or left hand side and just above the totals.

For example, if the c/d figure is £200 CR you are actually saying that this is the figure necessary to balance the account.

By the definition it is also saying that the DR's are £200 more than the Cr's therefore you are saying "I have to put an Extra £200 on the CR side to make the account balance". This c/r is sometimes called the "Balancing Figure", its purpose is to clearly state the difference between the two sides of the account.

At this stage the account itself has not lost or gained anything.

Now that you have balanced the account you can "bring down" b/d £200 below the totals of the account. In this example the b/d figure would be £200 DR.

This is still actually saying that our DR's are £200 greater than our CR's in this particular T account.

The b/d figure is sometimes called the c/f (carried forward) figure as it is carried forward to the next period. This is also known as the closing balance.

The carried forward figure is renamed the "brought forward" in the new period and is also known as the opening balance.

Example: If you think of your bank account having £200 DR (that's £200 cash in the bank) in it at the end of the financial period (Closing Balance), It will also have £200DR in it as the Opening balance for the start of the next period.

So in this example you have Carried Forward £200 to the next period and Brought Forward the same £200 from that period and into the next.

You CARRY something forward to the NEXT period. You BRING something forward from the PREVIOUS period.

To extend this a bit further, this explains how on the balance sheet, last periods closing balances are this periods opening balances. Some of these opening balances on the Balance Sheet are then transferred back to the P&L at the start of the new period, such as Opening Stock and Accruals etc. (Last years closing stock is this years opening stock).

Also you can think about why..............

Assets=Liabilites
DR = CR

Therefore..................

Assets-Liabilities=0
DR - CR=0

Assets (What the business owns (machinery etc) and is owed by others (payment for goods we have sold etc)

Liabilities (What the business owes to others (Loans etc) INCLUDING profit to its owners)

Note: The profit figure sits on the CR (Liabilities) side on the Balance Sheet and is the single figure that represents all the transactions on the P&L.

Also When you look at the profit figure on the balance sheet, you should be thinking of all the P&L "T" accounts that got it to that stage.

Does this help?