What is Balance B D and Balance C D - Accounting Capital PDF

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3/4/2020

What is Balance B/D and Balance C/D? - AccountingCapital

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What is Balance B/D and Balance C/D?

What is Balance B/D and Balance C/D?

Balance B/D and Balance C/D In bookkeeping, Balance B/D and Balance C/D are terms used for balancing and closing of ledger accounts from current period to the following period.

Connect & Stay Updated! Balance B/D – is the balance brought down as opening balance of a ledger pulled from pre

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period.

Balance C/D – is the balance carried down as the closing balance of a ledger pushed to the

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If Debit side > Credit side it is called Debit Balance

Explanation & Example – To Balance C/D and By Balance B/D To Balance c/d – In a ledger account when Credit side > Debit side the difference in balance is inserted on the debit side to balance the account, the differential amount is denoted as “To Balance c/d”.

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If Credit side > Debit side it is called Credit Balance

By Balance b/d – In the following accounting period closing credit balance of previous period (To Balance c/d) is brought down to the credit side of ledger account, this amount is the opening balance of next period and is denoted as “By Balance b/d”.

Related Topic – What are Closing Entries?

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3/4/2020

What is Balance B/D and Balance C/D? - AccountingCapital

Explanation & Example – By Balance C/D and To Balance B/D By Balance c/d – In a ledger account when Debit side > Credit side the difference in balance is inserted on the credit side to balance the account, the differential amount is denoted as “By Balance c/d”.

To Balance b/d – In the next accounting period closing debit balance of previous period (By Balance c/d) is brought down to the debit side of ledger account, this amount is the opening balance of next period and is denoted as “To Balance b/d”.

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Asset, Liability & Capital accounts are balanced whereas Revenue and Expense accounts are not balanced.

> Read Balance B/F and Balance C/F

Free Accounting Quiz - Test Your Skills & Improve Your Knowledge

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What is Balance B/D and Balance C/D? - AccountingCapital

Other Relevant Topics What is a Ledger? What is Debit Balance and Credit Balance? What is Posting? What is a Suspense Account? What is Adjusted Trial Balance?

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