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Tuesday, 12 June 2018

What are balance(Brought/carried down) and where to place them.

Brought/carried down are two confusing terms that most accounting students come across while balancing their ledgers(T- accounts or skeleton shaped accounts).
Mostly students cannot differentiate between b/d & c/d because they could not understand the concept of balancing the ledger accounts(T-accounts).


Basically, balancing ledger accounts is the main reason why we use the concept of brought down & carried down. Carried down is that balancing figure which is placed at the deficient side (Debit or Credit) of ledger accounts to show the equal amount on both sides (Debit or Credit) of a ledger account.

Whereas, brought down (Also called opening balance in the subsequent year) is the same amount that we place in the carried down (In preceding year) but it is placed on the opposite side (Debit or Credit)  of subsequent year as it was placed in the carried down in the preceding year.

In a nutshell we can say that whenever we make ledger accounts. Either they adjust the balance present in them by themselves or they remain deficient in either of their one side for which carried down is used to balance the amount.

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