What does the term 'brought down' refer to in ledger balancing?

What does the term 'brought down' refer to in ledger balancing?

• A. The balance at the start of the accounting period
• B. The balance at the end of the accounting period
• C. The total of debits
• D. The total of credits

Answer: (A)

Brought down shows the opening balance for the new accounting period, carried forward from the closing balance of the previous period. When you complete the balancing of a ledger account, the balance that remains on one side is written as the starting balance on the next page as Balance b/d. This opening balance is what begins the new period for that account, which is why it answers as the balance at the start of the period. The totals of debits and credits are separate calculations, and while the ending balance of one period becomes the starting balance for the next, the phrase specifically refers to that opening balance.

Brought down shows the opening balance for the new accounting period, carried forward from the closing balance of the previous period. When you complete the balancing of a ledger account, the balance that remains on one side is written as the starting balance on the next page as Balance b/d. This opening balance is what begins the new period for that account, which is why it answers as the balance at the start of the period. The totals of debits and credits are separate calculations, and while the ending balance of one period becomes the starting balance for the next, the phrase specifically refers to that opening balance.