Who is this guide meant for?

Class 11 and Class 12 commerce students, and CA Foundation aspirants, studying Financial Accounting.

Can I test myself on "Ledger balancing or Closing of ledger account | Ledger"?

Yes — this page includes a short interactive quiz so you can check your understanding straight away.

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Focus Topic:Ledger balancing or Closing of ledger account | Ledger

Estimated Reading Time:6 mins

In the previous article, we have already covered the meaning of the ledger , types of the ledger and how to post journal entry into the ledger account. So if…
Syllabus-aligned study material with detailed definitions, formats, and practical examples.
Interactive check: Includes a custom practice quiz at the bottom of the article to self-evaluate knowledge.

Ledger balancing

(These steps are common for both balances)

Step No.	Step Description	Debit Side	Credit Side
1^st	Total both sides of the ledger account.	Dr. side Total	Cr. side Total
2^nd	Writes the total of the largest side on both sides at the end of the ledger account.	Which one is higher "It may Be Dr. or Cr."	Which one is higher "It may Be Dr. or Cr."
3^rd	Subtract the shorter side total from the larger side total.	Got Balance Amount	Got Balance Amount
4^th	Now, Write the balance amount we got on the shorter side of the ledger account before the total amount. "WIth heading Balance carry down (C/d) or Balance carry forward(C/f)".	To Balance C/d	By Balance C/d
5^th	In last, Bought down this balance in the next financial year. It will be shown on the opposite side. "WIth heading Balance Bought down (B/d) or Balance Bought forward(B/f)".	To Balance B/d	By Balance B/d

We will explain it further with the Illustration.

01/04/2017 Started the business with cash Rs 50,000 and furniture worth Rs 1,00,000/-.
01/06/2017 Furniture sold for Rs 35000/- and get paid by a cheque. (Note we ignored Profit/ Loss and Depreciation)
31/07/2017 New Furniture purchase for Rs. 50,000 and paid by a cheque.
31/12/2017 Further furniture purchase for Rs 10,000 and paid by cash.
31/01/2018 Further new furniture purchased from Ram & Sons worth Rs 90,000/-.
31/03/2018 Depreciation charged on furniture for Rs 15,000/-.

We all know how to record journal entries and post them into the ledger. If you don't know then click on the below links

Step No.	Step Description	Debit Side	Credit Side
1^st	Total both sides of the ledger account.	2,50,000	50,000
2^nd	Writes the total of the largest side on both sides at the end of the ledger account.	2,50,000	2,50,000
3^rd	Subtract the shorter side total from the larger side total.	0	2,00,000
4^th	Now, Write the balance amount we got on the shorter side of the ledger account before the total amount. "WIth heading Balance carry down (C/d) or Balance carry forward(C/f)".	Nil	We got the balance in the credit side of the ledger account is called debit balance
5^th	In last, Bought down this balance in the next financial year. It will be shown on the opposite side. "WIth heading Balance Bought down (B/d) or Balance Bought forward(B/f)".	Balance B/d from last year to the next year(this is the next year step)	Nil