Accounting

Procedure for Balancing an Account

Procedure for Balancing an Account

Procedure for Balancing an Account

While balancing an account, the following steps are involved:

Step 1: Total the amount column of the debit side and the credit side separately and then ascertain the difference of both the columns.

Step 2: If the debit side total exceeds the credit side total, put such difference on the amount column of the credit side, write the date on which balancing is being done in the date column and the words “By Balance c/d” (c/d means carried down) in the particulars column.

If the credit side total exceeds the debit side total, put such difference on the amount column of the debit side, write the date on which balancing is being done in the date column and the words “To Balance c/d” in the particulars column.

Step 3: Total again both the amount columns, put the total on both the sides and draw a line above and a line below the totals.

Step 4: Enter the date of the beginning of the next period in the date column and bring down the debit balance on the debit side along with the words “To Balance b/d” (b/d means brought down) in the particulars column and the credit balance on the credit side along with the words “By balance b/d” in the particulars column.