When balancing ledger accounts, when is the balance brought down?

When balancing ledger accounts, when is the balance brought down?

• A. At the end of the accounting period
• B. At the start of the accounting period
• C. In the middle of the period
• D. After reconciliation

Answer: (B)

Balance brought down marks the opening balance for the new accounting period. It takes its value from the closing balance of the previous period, carried forward to start the next period. That’s why this figure is entered at the beginning of the period as the opening balance. The closing balance at the end of a period is shown as balance carried down (c/d) and then brought down (b/d) at the start of the next period to maintain continuity. It isn’t something that happens in the middle or after reconciliation.

Balance brought down marks the opening balance for the new accounting period. It takes its value from the closing balance of the previous period, carried forward to start the next period. That’s why this figure is entered at the beginning of the period as the opening balance. The closing balance at the end of a period is shown as balance carried down (c/d) and then brought down (b/d) at the start of the next period to maintain continuity. It isn’t something that happens in the middle or after reconciliation.