by Account Carried Down
Balance carried down represents the monetary balance of a real or personal ledger account that carried forward to the subsequent accounting period. In other words, this is the closing balance of the ledger account.
Once balance brought down and all debit and credit entries for the accounting period are posted to the ledger account, it is balanced. This is done at the end of the accounting period. In case of nominal ledger accounts, the balancing figure is transferred to the income statement. In case of real and personal accounts, the balancing figure is carried on to the subsequent accounting period as balance carried down.
Brought Down
Balance brought down represents the monetary balance of a real or personal ledger account that is brought in to the books from a previous accounting period. In other words, this is the opening balance of the ledger account.
Balances of nominal ledger accounts are transferred to the income statement each year and are thus not continued into subsequent accounting periods. Balance brought down is thus present only in real and personal accounts that are continued in consecutive accounting periods. Balance brought down is derived from the ledger accounts/trial balance of the previous accounting period.
Carried Forward
Balance carried down is the closing balance of a ledger account that is carried forward to the next accounting period. The other hand is the last posting (balancing) to the ledger that is done at the the accounting period Balance carried down is calculated after balancing the debits and credits posted to a ledger account. It becomes the balance brought down of the next accounting period.
Balance carried down is reflected on the left side in case of ledger accounts with credit balance and on the right side in case of ledger accounts with debit balance. Balance carried down is transferred to the trial balance of the entity.
Brought Forward
At the beginning of a new journal page, the opening balance is quoted from the previous page, this balance pulled forward from the previous page to the current page is termed as “Balance B/F” or “Total B/F” (Brought Forward).
Balance b/f can appear in two places in a T-account.
- It is the term showing the opening balance of the account on a certain date. It is the balance that has been brought forward to the current period from the previous period.
- It is also used to show the closing balance of the account, meaning the balance we will bring forward to the next period.
