It would appear on the right side of the ledger account if total credits exceed total debits. 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.
Modifying the above example, the balance carried down reflected in a proforma of a ledger account is as follows:. In the above example, instead of receiving the entire payment from the debtor , partial payment is received. The balance to be received which is carried forward as a receivable is reflected as balance carried down. The balance carried down appears on the right side of the ledger account if the total of debits to an account exceeds total of credits to the account, in the current accounting period.
It would appear on the left side of the ledger account if total credits exceed total debits. The balance carried down of one accounting period becomes the balance brought down of the subsequent accounting period. Usage explanations of natural written and spoken English.
Grammar Thesaurus. Word Lists. Choose your language. My word lists. Tell us about this example sentence:. The word in the example sentence does not match the entry word. The sentence contains offensive content. Cancel Submit. Your feedback will be reviewed. The computer and bank loan accounts have single entries on one side, like the furniture account, so they need to be treated in the same way.
From the trial balance we can see that the total of debit balances equals the total of credit balances. Making the decision to study can be a big step, which is why you'll want a trusted University.
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