You can also learn to balance all type of accounts from the following links: – I will explain to you the all the transaction below and we will prepare only Capital account and ignore rest all account. Here is the total 6 number of transaction in the question solved in the following image. We will explain it further with the following Example: This balance is brought down on the Credit side while opening the account for the next period and the words “By balance B/d” (B/d Means Brought down) is written in the particulars column. If the Credit side of an account exceeds the Debit side, the account is said to have a “Credit balance” to the extent of such difference which is put on the Debit side of the account in order to make the totals of the two sides equal and against this amount, the words “To balance C/d” (C/d means carried down) is written in the particulars column. It will be shown on the opposite side of the ledger account as shown in the image below:. “ Note: – This above calculation not shown in the ledger account it is only for you and you can do it on a rough sheet.” 4th Step, Write balance amount we got on the shorter side of the ledger account before the total amount as shown in the below image: – Ledger Balancing – Example Solve – Step 4ĥ Step, Bought down this balance in the next financial year. Now, we get the balance from the debit side = Rs 2,00,000/- it is called a debit balance. Means Less credit side total from debit side total. Ledger Balancing – Example Solve – Step 2 3rd Step, Subtract shorter side total from the larger side total: “ Note: – This above calculation not shown in the ledger account it is only for you and you can do it on a rough sheet.”Ģnd Step, Writes the total of the largest side on both sides at the end of the ledger account: Rs 2,50,000 is the largest from both sides.Īs shown in the above image we wrote Rs 2,50,000 on both sides of the account. Or we can solve this like shown below ( we will highlight all the changes made in the step with green colour):- 1st Step, Total both sides of the ledger account: We got the balance in the credit side of the ledger account is called debit balanceīalance B/d from last year to the next year(this is the next year step) Now we will show you a solution with the above table: – Step No. Depreciation charged on furniture for Rs 15,000/.Further new furniture purchased from Ram & Sons worth Rs 90,000/.Further furniture purchase for Rs 10,000 and paid by cash.(Note we ignored Profit/ Loss and Depreciation) Furniture sold for Rs 35000/- and get paid by a cheque.Started the business with cash Rs 50,000 and furniture worth Rs 1,00,000/.Please Prepare Furniture account from the following information: We will explain it further with the Illustration. “WIth heading Balance Bought down (B/d) or Balance Bought forward(B/f)”. In last, Bought down this balance in the next financial year. “WIth heading Balance carry down (C/d) or Balance carry forward(C/f)”. Now, Write the balance amount we got on the shorter side of the ledger account before the total amount. Subtract the shorter side total from the larger side total. Writes the total of the largest side on both sides at the end of the ledger account. The following steps are involved in the ledger balancing:- (These steps are common for both balances) Step No.

This balance is brought down on the debit side while opening the account for the next period and the words “To balance B/d” (B/d Means Brought down) is written in the particulars column. If the debit side of an account exceeds the credit side, the account is said to have a “debit balance” to the extent of such difference which is put on the credit side of the account in order to make the totals of the two sides equal and against this amount, the words “By balance C/d” (C/d means carried down) is written in the particulars column. After ascertaining the difference we will get two types of balance show as below: The Ledger balancing of an account means that when the postings of transactions into the ledgers are over, we have to ascertain the difference in the total of both sides of the account and putting it on the shorter side of the ledger account.

How to do a ledger account