Balance Brought Forward

What is Balance Brought Forward?

Balance Brought Forward is the balance brought down that is posted in the same account in the proceeding financial period.It applies when organization is crossing over to the proceeding financial period and has to open new ledger accounts. Of course, the closing balances brought down in the respective ledger accounts are the same balances which will appear on the corresponding side of the same ledger in the proceeding financial period.

Balance Brought Forward is required to open the new corresponding ledger account in the new financial period.

Example of Balance Brought Forward