Carried Down (C/D)

Carried Down (C/D) is an accounting term used to indicate that the total balance from the previous page of a ledger is carried down to the top of the new page.
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Definition

Carried Down (C/D) is a notation used in accounting to signify that the total balance of a particular ledger account from the previous page has been transferred to the top of the new page. This is an essential part of maintaining the continuity and accuracy of financial records in bookkeeping or accounting. The term is often used in conjunction with Brought Down (B/D), which signifies that the balance has been carried over.

Examples

  1. Transaction Ledger: If a company’s transaction ledger for the month ends on page 1 with a credit balance of $1,200, this balance will be carried down (C/D) to page 2, where it will appear as the opening balance.

  2. Reconciliation Statements: During the preparation of bank reconciliation statements, the remaining balance on one page of the ledger is carried down to the next to ensure consistency across financial periods.

Frequently Asked Questions

Q1: Why is Carried Down (C/D) important in accounting?

A1: Carried Down (C/D) ensures that the continuity of account balances is maintained across ledger pages, which helps in accurate financial statement preparation and audit trails.

Q2: How is Carried Down (C/D) different from Brought Down (B/D)?

A2: C/D indicates that a balance is being transferred to the next page of the ledger, while B/D marks the entry of that balance at the top of the new page.

Q3: Can Carried Down be used for both credit and debit balances?

A3: Yes, Carried Down (C/D) can be used for both credit and debit balances in a ledger.

Q4: Where is Carried Down (C/D) typically found in financial records?

A4: It is typically found in detailed ledger accounts, where multiple transactions are recorded over time, and page breaks are necessary.

Q5: Is Carried Down (C/D) used in modern computerized accounting systems?

A5: While modern systems automate much of the ledger balance management, Carried Down (C/D) and similar notations are still conceptual anchors in understanding manual record-keeping.

  • Brought Down (B/D): This notation signifies that the balance has been transferred from the previous page or section and is being brought down to the current page or section.
  • Ledger: A bookkeeping journal where financial transactions are recorded.
  • Double-Entry Accounting: An accounting system that requires every entry to have a corresponding and opposite entry to a different account.
  • Reconciliation: The process of ensuring that two sets of records are in agreement.

Online References

Suggested Books for Further Studies

  • “Accounting Made Simple: Accounting Explained in 100 Pages or Less” by Mike Piper
  • “Intermediate Accounting” by Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
  • “Financial Accounting for Dummies” by Maire Loughran
  • “Accounting All-in-One For Dummies” by Kenneth W. Boyd

Accounting Basics: “Carried Down (C/D)” Fundamentals Quiz

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Carried Forward (c/f)
Carried Down (**c/d**)