If the debit total is greater, the carried down balance is on which side for the next period?

If the debit total is greater, the carried down balance is on which side for the next period?

• A. Credit side
• B. Debit side
• C. Neither side
• D. Both sides

Answer: (A)

When balancing a ledger account, you equalize the two sides by placing the difference on the opposite side. If the debit total is greater, the account has a debit balance, and you insert the balancing figure on the credit side to bring the totals together. That balancing figure is the balance carried down for the next period, and it sits on the credit side as Balance c/d. In the new period, you bring that balance down to the debit side as Balance b/d to start the period. For example, if debits total 1,200 and credits total 900, you add 300 on the credit side to balance; the carried-down balance is 300 on the credit side, and it will be brought down on the debit side next period.

When balancing a ledger account, you equalize the two sides by placing the difference on the opposite side. If the debit total is greater, the account has a debit balance, and you insert the balancing figure on the credit side to bring the totals together. That balancing figure is the balance carried down for the next period, and it sits on the credit side as Balance c/d. In the new period, you bring that balance down to the debit side as Balance b/d to start the period. For example, if debits total 1,200 and credits total 900, you add 300 on the credit side to balance; the carried-down balance is 300 on the credit side, and it will be brought down on the debit side next period.