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.
I can tell you that Bal c/d is short for Balance carried down. As for Bal d/d could it be deferred something? Possibly "deferred debts?"
Sra
In accounting, "Bal c/d" stands for Balance carried down, while "Bal d/d" stands for Balance brought down. These terms are commonly used when preparing a balance sheet and are related to transferring the closing balance from one accounting period to the next.
Here's what each term means:
1. Balance Carried Down (Bal c/d): When preparing a balance sheet, the closing balances of various accounts from the previous accounting period are listed under the "Bal c/d" column. This is done to carry forward these balances to the next accounting period and serve as the opening balances.
2. Balance Brought Down (Bal d/d): When starting a new accounting period, the balances that were carried forward from the previous period under the "Bal c/d" column are transferred to the "Bal d/d" column of the new balance sheet. This becomes the opening balance for the new period.
So, essentially, "Bal c/d" represents the closing balance of an account from the previous accounting period, while "Bal d/d" represents the opening balance of the same account for the current accounting period.
When completing your balance sheet, you may find the "Bal c/d" column as the last column on the left side, followed by the "Bal d/d" column as the first column on the right side.
Note that these terms are not always explicitly defined in textbooks or reading assignments, as they are standard abbreviations used in accounting practices. However, understanding their meaning is crucial when preparing financial statements.