Balance carried down
The balance carried down is the figure inserted to make the debit and credit totals of a ledger account equal when balancing it. It represents the difference between the two sides. For an ongoing asset, liability or equity account, the balance is then brought down on the opposite side as the opening balance of the next period. Revenue and expense accounts are normally closed to determine profit rather than carried forward as continuing balances.
Worked example
A bank account has debit entries of $9,000 and credit entries of $6,000. Insert a $3,000 balance carried down on the credit side. The next period begins with a $3,000 debit balance brought down.
Common mistake
A carried-down amount is a balancing figure, not an additional receipt or payment.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: balance c/d, balance carried forward