Balancing Accounts

Here are the steps for balancing the accounts (the steps are the same for the purchase ledger account, sales ledger account and a general ledger account,

1. Total the debit and credit columns and make a note of these.
2. Calculate the difference between the two figures from step one - this is the closing balance and needs to be entered on the side with the lowest total.
3. In the sum boxes enter the column total.
4. Transfer the closing balance to the opposite side of the account (this then becomes the opening balance for the next month).

Things To Note

• Balance brought down is is the opening balance and is always dated the first day of the period.
• Balance carried down is the closing balance and is always dated the last day of the current period