To balance an account, total both sides, write the difference on the smaller side as balance c/d, and bring the same figure down as balance b/d on the opposite side. Both totals then agree.
This lesson follows posting journal entries to ledgers.
How do you balance an account?
- Add the debit side and the credit side separately, in pencil or on scrap paper.
- Subtract the smaller total from the larger. That difference is the balance.
- Write it on the smaller side as balance c/d (carried down), so that both columns add up to the same figure.
- Write both totals on the same line, then bring the balance down on the opposite side as balance b/d.
If the two totals differ after step 3, an addition is wrong. Recheck before moving on.
Worked example: a Bank account
Ravi’s Bank account for March, with amounts in RM, has these entries.
| Debit | RM | Credit | RM |
|---|---|---|---|
| 1 Mar Capital | 8 000 | 5 Mar Rent | 600 |
| 20 Mar Hana | 1 200 | 9 Mar Suria Trading | 1 000 |
| 28 Mar Drawings | 300 |
Debits total 8 000 + 1 200 = 9 200. Credits total 600 + 1 000 + 300 = 1 900. The difference is 9 200 − 1 900 = 7 300.
The credit side is smaller, so balance c/d goes there.
| Debit | RM | Credit | RM |
|---|---|---|---|
| 1 Mar Capital | 8 000 | 5 Mar Rent | 600 |
| 20 Mar Hana | 1 200 | 9 Mar Suria Trading | 1 000 |
| 28 Mar Drawings | 300 | ||
| 31 Mar Balance c/d | 7 300 | ||
| Total | 9 200 | Total | 9 200 |
| 1 Apr Balance b/d | 7 300 |
The business has RM7 300 in the bank at the start of April, which is a debit balance because Bank is an asset.
The mistake that costs marks
The usual slip is to put balance c/d on the larger side, because that is where the eye is already looking. The totals then cannot agree, because the larger side gets even larger.
| Step | Wrong | Right |
|---|---|---|
| Side for balance c/d | Debit (larger) | Credit (smaller) |
| Totals | 16 500 and 1 900 | 9 200 and 9 200 |
| Balance b/d | Credit 7 300 | Debit 7 300 |
The wrong version shows an overdraft when the business actually holds cash. Write the larger total first, then ask which side needs the gap filled.
Check yourself
Balance Hana’s account. Debit side: 12 Mar Sales 2 000 and 25 Mar Sales 1 500. Credit side: 20 Mar Bank 2 000.
Answer
Debits: 2 000 + 1 500 = 3 500. Credits: 2 000. Difference: 1 500.
The credit side is smaller, so write balance c/d 1 500 on the credit side. Both totals are 3 500.
Bring down balance b/d 1 500 on the debit side. Hana still owes RM1 500, which is a debit balance for a debtor.
What to study next
If the trial balance later refuses to agree, use tracing an error through both sides of a transaction. Practise balancing with the debit-credit transaction trainer and record slips in the mistake log.
If you want a teacher to watch you balance live, see online one-to-one Accounting tuition.