Doing a balance sheet. Trying to understand what Bal c/d, and Bal d/d means. It gives me the profit for the year then the payout also gives me the earnings for the year and then the two quotes above which I cannot find the definition of anywhere in my reading assignment.
Please see your later post, which I saw first.
Sra
Sold instruments to customers for $10,000; received $6,000 in cash and the rest on account.
The cost of the instruments was $7,000
In accounting, "Bal c/d" and "Bal d/d" are abbreviations used to represent balance carried down and balance brought down, respectively. They are typically found in the capital or owner's equity section of a balance sheet or in a ledger account.
1. Bal c/d (Balance Carried Down): This refers to the closing balance of an account at the end of a specific period. It represents the remaining balance from the previous accounting period that is carried forward to the next period.
To determine the Bal c/d, you need to start with the opening balance from the previous period, add any transactions or entries made during the current period, and then calculate the closing balance. This closing balance is then carried down to become the opening balance for the subsequent period.
2. Bal d/d (Balance Brought Down): This represents the opening balance of an account at the start of a new accounting period. It is the same as the closing balance of the previous accounting period, which is brought forward to the next period.
To find the Bal d/d, you need to take the closing balance from the previous accounting period and transfer it as the opening balance for the current period. This ensures that the continuity of the account balances is maintained.
These abbreviations are commonly used to indicate how balances are transferred and carried forward in financial statements or ledger accounts. The Bal c/d shows the closing balance from the previous period, while the Bal d/d represents the opening balance in the subsequent period.
Understanding these abbreviations is essential for accurately presenting the financial position of a company and analyzing its performance over different accounting periods.