Page 60 - F3 -FA Integrated Workbook STUDENT 2018-19

Chapter 4

Balancing off a ledger account

2.1 Balancing off a ledger account

When all transactions for an accounting period have been recorded, it will be
necessary to find the balance on each ledger account (T-account) as follows:

(1) total both sides of the T-account and identify the larger total.

(2) put the larger total in the total boxes at the bottom of the debit side and the
credit side.

(3) insert a balancing figure to the side of the T-account which does not currently
add up to the amount in the total box. Reference this balancing figure ‘balance
c/f’ (carried forward) or ‘balance c/d’ (carried down), and

(4) carry the balance down diagonally and reference it ‘balance b/f’ (brought
forward) or ‘balance b/d’ (brought down).

Illustration 1

Cash account

Date Details $ Date Details $

Jun 1 Balance b/d 100 Jun 3 Wages 150
Jun 4 Sales 600 Jun 5 Purchases 375

Jun 7 Capital introduced 1,000 Jun 7 Heat and light 400

––––– ––––
Sub-total 1,700 Sub-total 925

Balance c/d 775
(β figure)

––––– ––––
1,700 1,700

––––– ––––

Jun 7 Balance b/d 775

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