Balance Carried Down

Balance Carried Down is the monetary amount that is used in balancing the two sides of a ledger account. It emanates by subtracting the DR totals from CR totals of a particular ledger account.

It applies where the ledger account has different debit and credit totals. If the two sides of a ledger account are the same, then there is no balance carried down. In other words, the balance is zero.Balance Carried Down is necessary for making the two sides of a ledger account equal

Balance Carried Down is as good as the Balance Brought because when the latter (ie bal b/d) is determined, the same amount is taken as the balance carried down and used to fill up the side with the shortage in that particular ledger account. So, the balance c/d is always placed on the side with shortage before the totals while balance b/d is always placed on the opposite side but below the totals. But the amounts are the same.

Example of  Balance Carried Down