Balancing ledger accounts
Balancing a ledger account finds the difference between its debit and credit totals. Insert a balance carried down on the smaller side to make the totals equal, then bring the balance down on the opposite side for the next period. Permanent accounts retain balances; income and expense balances are closed into the period’s profit calculation.
Worked example
A bank account has debits of $8,000 and credits of $5,000. Its $3,000 debit balance is carried down on the credit side.
Common mistake
The side used for the balancing figure is not the nature of the resulting balance: the brought-down balance identifies that.
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 |