To balance an account, add both sides, find the difference and write it on the smaller side as “balance c/d” so the totals agree. Then write the same figure on the opposite side below the totals as “balance b/d”. The balance brought down is on the side that had the larger total.
You need this skill for bank, cash, receivables and payables accounts, and it feeds directly into the trial balance.
What does a balance mean?
A debit balance means the account holds more debits than credits. For an asset such as Bank, that is the normal position: the business has funds.
A credit balance on a liability such as a supplier means the business still owes money. The brought-down side tells you which case you are in.
How do you balance an account step by step?
- Total each side on scrap paper first.
- Find the larger total. Write it on both sides at the same level.
- Work out the difference. Subtract the smaller total from the larger.
- Write the difference on the smaller side as “Balance c/d”, on the line above the totals.
- Write the totals on both sides, equal, and draw the lines.
- Bring the balance down on the opposite side, below the totals, dated the next day, as “Balance b/d”.
Worked example
Dewi Florist is a fictional business. By the end of March, the Bank account holds these lines.
Bank account before balancing
| Date | Details | RM | Date | Details | RM |
|---|---|---|---|---|---|
| 1 Mar | Capital | 8,000 | 3 Mar | Purchases | 1,500 |
| 5 Mar | Sales | 2,200 | 12 Mar | Rent | 900 |
| 15 Mar | Sales | 1,300 | 20 Mar | Trade payables | 2,100 |
Step 1. Debit total: 8,000 + 2,200 + 1,300 = RM11,500. Credit total: 1,500 + 900 + 2,100 = RM4,500.
Step 2. The debit side is larger, so the account has a debit balance. The difference is 11,500 − 4,500 = RM7,000.
Step 3. Write “Balance c/d 7,000” on the credit side, so the credit side becomes 4,500 + 7,000 = 11,500. Both totals are RM11,500.
Step 4. Bring it down on the debit side: “1 Apr Balance b/d 7,000”.
Bank account after balancing
| Date | Details | RM | Date | Details | RM |
|---|---|---|---|---|---|
| 1 Mar | Capital | 8,000 | 3 Mar | Purchases | 1,500 |
| 5 Mar | Sales | 2,200 | 12 Mar | Rent | 900 |
| 15 Mar | Sales | 1,300 | 20 Mar | Trade payables | 2,100 |
| 31 Mar | Balance c/d | 7,000 | |||
| 11,500 | 11,500 | ||||
| 1 Apr | Balance b/d | 7,000 |
The business starts April with RM7,000 in the bank, which matches a debit balance on an asset.
What mistake should you watch for?
A common slip is to put the balance carried down on the larger side.
Mistaken working: The student writes “Balance c/d 7,000” on the debit side, making that side 11,500 + 7,000 = 18,500, and then matches the credit side to 18,500.
The student put the balancing figure where the money was, not where the gap was.
The totals now do not reflect the real transactions, and the brought-down balance lands on the wrong side. Correction: the balance c/d goes on the smaller side (credit here). The b/d then appears on the larger side (debit), which is where an asset balance should be.
Check yourself
1. A Receivables account for Lim has debits of RM3,000 and RM1,500 and a credit of RM2,200. What is the balance, and on which side is it brought down?
Show answer
Debits: 3,000 + 1,500 = 4,500. Credits: 2,200. Difference: 4,500 − 2,200 = RM2,300. Balance c/d goes on the credit side; balance b/d is on the debit side. Lim owes RM2,300. Both totals are RM4,500.
2. An account has total debits of RM850 and total credits of RM1,400. What is the balance and which side is it brought down on?
Show answer
Credits are larger. Difference: 1,400 − 850 = RM550. Balance c/d goes on the debit side (850 + 550 = 1,400). Balance b/d is on the credit side, RM550.
3. A Cash account has debits of RM500, RM300 and RM200, and credits of RM350 and RM250. State the balance and what it tells you.
Show answer
Debits: 500 + 300 + 200 = 1,000. Credits: 350 + 250 = 600. Difference: RM400, brought down on the debit side. The business has RM400 cash at the start of the next period.
Where does this lead next?
Balances are the starting point for checking entries. Next, see how a balanced entry can still be wrong: diagnose a balanced but wrongly classified entry. The double-entry and ledger trainer lets you check your ledger balances on fictional transactions.
Many errors come from one unnoticed habit, such as choosing the wrong side for the balance. A teacher in online one-to-one Accounting tuition can watch you balance an account and point to the exact step where the habit starts.