Understanding the Differences Between Carried Down (C/d) and Carried Forward (C/f) in Accounting

Accurate bookkeeping is crucial for maintaining the integrity of financial records. In the realm of accounting, the terms carried down (C/d) and carried forward (C/f) are fundamental concepts that help in the smooth transition of balances between accounting periods. This article will explore these terms in detail, their usage, and their significance.

What Are Carried Down (C/d) and Carried Forward (C/f) in Accounting?

At the end of an accounting period, accountants need to record the final balance of each account. This balance might be positive, indicating a surplus, or negative, indicating a deficit. The balance is then transferred to the next period. Here's where the terms carried down (C/d) and carried forward (C/f) come into play.

Carried Down (C/d)

Definition: Carried down refers to the balance of an account at the end of an accounting period that is transferred to the next period.

Usage: Typically, carried down is used in the context of closing entries in a ledger. For instance, if a revenue account has a total of $5,000 at the end of the period, you would write:

This indicates that the $5,000 balance will be carried down to the next period. In the next accounting period, you would have:

{  "n": "Revenue Account",   "Opening balance brought forward": "5,000 C/f