Glossary · Also called Balancing off
Balancing the account
Working out the closing figure of a ledger account and carrying it forward.
What it means
The process of totalling both sides of a ledger account, finding the difference, and carrying it down as the opening balance for the next period.
Example
A cash account with more debits than credits leaves a debit balance carried down.
Why it matters
Balancing accounts produces the figures listed in the trial balance.
In practice
Balancing is done inside each ledger account, usually at the period end. Total both sides. Insert a balance carried down (balance c/d) on the smaller side so the two totals agree. Then bring that figure down (balance b/d) on the opposite side to open the next period.
Suppose a customer's account shows RM900 of sales on the debit side and RM500 received on the credit side. The balance c/d of RM400 goes on the credit side. RM400 balance b/d appears on the debit side afterwards, showing RM400 still owed.
Students often confuse balancing an account with the trial balance. Balancing gives one closing figure for a single account. The trial balance lists all those closing figures together to test that total debits equal total credits. Only asset, liability and capital balances are carried down. Income and expense accounts are transferred to the final accounts and closed.
If your balances c/d and b/d end up on the wrong sides, one of our teachers can check your ledger accounts with you line by line. Book a trial class.
Related terms
Syllabus reference: Cambridge 0452 and 0985, syllabus for 2027 to 2029, sub-topic 2.1 The double entry system of book-keeping (page 12).
Definitions here are general accounting explanations for study. For your board's exact wording, see its official syllabus via Sources.
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