Page 5 - Lesson Note

 Balancing of ledgers means finding the difference between the debit and

credit amounts of a particular account i.e. heavier total and lighter total

difference and recording that difference amount on the lighter total side.

Steps for Balancing Ledger Account

1. First of all, calculate the totals of debit and credit columns separately on a

rough sheet to avoid mistakes. Find out the difference between the heavier

total and lighter total by subtracting the lower from higher. The difference

is called a Balance amount.

2. If the total of the debit side is heavier than that of the credit side, the

balance is called as “Debit Balance” and is written on the credit side (the

side with lower amount) of that particular account as “By Balance c/d” or

“By Balance c/FD”. Here, c/d means carried down and c/FD means carried

forward.

3. Similarly, if the total of the credit side is more than that of debit side total,

the balance is called “Credit Balance”. The difference amount is written on

the debit side of the account as “To balance c/d” or “To balance c/fd”

4. Once we get the heavier total it should be written in both the columns’

total. Draw double lines across the total below the amounts which indicates

the account is closed and balanced.

5. Last year’s closing balance is the opening balance of the current year. So, if

there is debit it should be shown on the debit side of a particular account as

“To Balance b/d” or “To Balance b/f”. Here, b/d means brought down and

b/f means brought forward.