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

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Prepare for the AAT Level 2 Bookkeeping Test with flashcards and multiple choice questions. Each question includes hints and explanations to improve your understanding and readiness for the exam.

Multiple Choice

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

Explanation:
When you finish a period and tally the trial balance, if the debit total is higher, that means the accounts collectively show a debit balance. To carry this balance forward to the next period, you place the balancing figure on the opposite side—the credit side—so the two sides balance. This balancing figure is shown as balance c/d on the credit side and then appears as balance b/d on the credit side at the start of the next period. So the carried down balance sits on the credit side.

When you finish a period and tally the trial balance, if the debit total is higher, that means the accounts collectively show a debit balance. To carry this balance forward to the next period, you place the balancing figure on the opposite side—the credit side—so the two sides balance. This balancing figure is shown as balance c/d on the credit side and then appears as balance b/d on the credit side at the start of the next period. So the carried down balance sits on the credit side.

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