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

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Study for the AAT Level 2 Introduction to Bookkeeping Test. Use flashcards and multiple choice questions with hints and explanations. Prepare effectively for your 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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