Balance Brought down vs Closed Down

Spelton04

Hi can anybody please explain the differences between balance b/d and c/d on the attached image. I understand one is carried over to another ect however I'm not sure why one appears on the CR side and others on the DR side. I'm baffled.

LeapyUK

Hello there!

I am currently studying that at the moment and have my first exam in 2 weeks.

I can help you on this. Balance carried down is always on the “lowest” total side, and whatever the difference is between the total transactions on the lower side and the “equal totals” along both (the highest total) is the balance carried down.

Balance brought down is always below the line (“b”rought down “b”elow the line), and equals to the same amount that is carried down.

So in your bank account, you have 20,000 + 800 + 150 + 400 = £21,350 on the debit side.

On the credit side, you have 1200 + 800 + 500 + 300 + 100 + 350 + 200 = £3,450.

£21,350 is the highest total of both sides, so you write that amount in the boxes on both sides.

The difference on the credit side then is now £21,350 minus the totals on that side which is £3,450.

Therefore, £21,350 - £3,450 = £ 17,900.

So that amount is carried down on the lower total side at week/month end, and brought down (below the equal totals) on the opposite side.

Hope this helps!

Spelton04

Thankyou very much, now it makes more sense.