Balance Brought Down

Balance Brought Down (Bal b/d) is the excess monetary amount realized by subtracting the smaller CR totals from the bigger DR totals of a particular ledger account. Hence Debit balance Or it is the excess monetary amount realized by subtracting the smaller DR totals from the bigger CR totals of a particular ledger account. Hence, Credit balance.

It applies during the process of balancing a ledger account. The aim is to establish the net monetary amount of the respective item represented by that ledger account.

How does Balance Brought Down work?

Balance Brought Down works as follows;

If the balanced brought down (Bal b/d) is on the debit side, it is referred to as a debit balance and it means that the debit side is more than credit side total amounts

If the balanced brought down (Bal b/d) is on the credit side, it is referred to as a credit balance and it means that the credit side is more than debit side total amounts

If the debit and credit totals are the same, then the balance brought down is zero and that account is closed down at the end of the financial period. In other words, that item does not exist in the business.

Example of balance brought down