PRC-1 · Chapter 3 · Question 87 of 100
When balancing an asset account at the end of the month, the 'Balance c/d' (carried down) is written on the credit side. Consequently, the 'Balance b/d' (brought down) for the new month will appear on the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit side.
Explanation
The balancing figure (c/d) is placed on the lighter side (credit side for an asset) to equalize the totals. It is then brought down diagonally to the debit side, reflecting the true debit balance of the asset.
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