PRC-1 · Chapter 3 · Question 11 of 100
If an account in the general ledger of 'Apex Ltd' shows a 'Balance c/d' (carried down) on the debit side, what does this mathematically represent for the next period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A credit balance brought forward.
Explanation
When balancing a T-account, a balance carried down (c/d) on the debit side means the credit side was heavier. This balance is then brought down diagonally, resulting in a credit balance brought forward (b/d) for the new period.
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