Financial Accounting · General ledger accounts and journal entries

Writing Up Ledger Accounts and Balancing Off T Accounts

Updated 11 October 2026 · Fact-checked

A ledger account is a T account that records every transaction affecting one item. To balance it, total both sides, find the difference, write it on the smaller side as the balance carried down, total both sides equally, then bring the balance down on the opposite side. Then list all closing balances in a trial balance.

Understand Writing Up Ledger Accounts and Balancing Off

A ledger account is a record of all transactions for one item, such as cash, receivables, sales or rent. It is drawn as a T account. The left side is the debit side. The right side is the credit side.

Every transaction has two effects, so you post it twice. One account is debited and another is credited, with equal amounts. Assets and expenses increase with debits. Liabilities, equity and income increase with credits.

At the end of a period you need one figure for each account. This is the balance. You find it by adding up both sides and taking the difference. The balance is written on the smaller side as balance carried down (c/d), so the two sides total the same. You then write the same figure on the opposite side below the totals as balance brought down (b/d). This is the opening balance for the next period.

The b/d side tells you the nature of the balance. A debit b/d is a debit balance. A credit b/d is a credit balance. A trial balance lists all these closing balances in two columns. If you posted every entry with equal debits and credits, the two columns total the same.

In the exam you may be given a list of transactions and asked for one closing balance, or a set of balances and asked for the trial balance total. Both rely on the same skill: post carefully, then balance carefully.

Key formulas to remember

Balancing rule: Balance = larger side total − smaller side total; Write it on the smaller side as c/d, so both sides total the same.
Brought down side: b/d goes on the opposite side to c/d; If c/d is on the credit side, b/d is a debit balance, and vice versa.
Debit rule: Debit: assets ↑, expenses ↑, liabilities ↓, equity ↓, income ↓; Use this to decide the side of each posting.
Credit rule: Credit: liabilities ↑, equity ↑, income ↑, assets ↓, expenses ↓; Every debit has an equal credit.
Trial balance check: Total debit balances = total credit balances; A match shows the ledger is arithmetically consistent. It does not prove every entry is correct.

How to solve Writing Up Ledger Accounts and Balancing Off questions

Use this method for any ledger or trial balance question.

1Read the question and identify which accounts you need. Draw a T account for each, with the opening balance on the correct side.
2Work through each transaction. Decide the two accounts affected and which is debited and which credited.
3Post each entry on the correct side of each account. Label each line with the name of the other account.
4Add up the debit side and the credit side separately. Do this on scrap paper first.
5Write the difference on the smaller side as balance c/d. Total both sides with the same figure.
6Write the same balance on the opposite side below the totals as b/d.
7For a trial balance, list each b/d balance in the debit or credit column according to its side. Add each column.
8Check that the answer matches what was asked, such as the closing balance, the side, or the trial balance total.

Quickest way: Running balance method for objective tests

When to use it: Use it when a question asks for just one closing balance and you have about 3 minutes.

Do not draw the full T account if it only needs one balance. Write D and C columns on the scrap paper.
List the opening balance and each transaction on its correct side, using only amounts for that account.
Total debits and credits. Subtract the smaller from the larger.
The side with the larger total gives the nature of the balance, debit or credit.
Check the answer options for the right side and amount. Beware of options that use the right number with the wrong side.

Common mistakes in Writing Up Ledger Accounts and Balancing Off

Putting the balance c/d on the larger side.
Students think the balance should join the bigger total.
Fix: The balance c/d goes on the smaller side. It makes the two sides equal.
Putting b/d on the same side as c/d.
Students copy the figure down without thinking about sides.
Fix: b/d is always on the opposite side to c/d. Check it matches the account type, such as a debit for an asset.
Posting only one side of a transaction.
Students rush and forget the second account.
Fix: For each transaction, write the debit account and credit account before you post. Then post both.
Mixing up debit and credit for expenses and income.
Students link debit with decrease from bank statements.
Fix: In your own books, debit expenses and assets, and credit income and liabilities. A bank statement shows the bank's view, not yours.
Listing a credit balance in the debit column of the trial balance.
Students go by the account name, not the side of the balance.
Fix: Use the b/d side. Debit b/d goes in the debit column and credit b/d in the credit column.
Ignoring the opening balance.
Students start with transactions and overlook the first line.
Fix: Always enter the opening balance first, on the side that matches its nature.

Worked examples

Example 1

A business starts the month with a cash balance of $2,000 (debit). During the month it receives $5,500 from customers, pays $3,200 to suppliers and pays $900 for rent. Find the closing cash balance.

Show the solution

Debit side: opening balance $2,000 + receipts $5,500 = $7,500.
Credit side: payments $3,200 + $900 = $4,100.
Debit total is larger, so the balance is $7,500 − $4,100 = $3,400.
Write $3,400 on the credit side as balance c/d. Both sides total $7,500.
Bring down $3,400 on the debit side as b/d.

Answer: The closing cash balance is $3,400 debit.

Example 2

After balancing, a business has these balances: cash $3,400 debit; receivables $6,000 debit; payables $4,100 credit; sales $20,000 credit; purchases $12,000 debit; rent $900 debit; capital $x credit. The trial balance agrees. Find x.

Show the solution

Total debits: $3,400 + $6,000 + $12,000 + $900 = $22,300.
Credits known: $4,100 + $20,000 = $24,100.
Credits already exceed debits by $24,100 − $22,300 = $1,800, so capital cannot be a credit.
The balance must be on the debit side to make up the difference. The totals only agree if capital is a debit balance of $1,800.
Check: debits $22,300 + $1,800 = $24,100, which equals credits $24,100.

Answer: Capital is a debit balance of $1,800 (a negative capital position), so the trial balance totals $24,100 on each side.

Exam tips

For one-balance questions, always check the side as well as the amount. Wrong options often use the right number on the wrong side.
Use scrap paper or the on-screen tools to total each side before choosing an answer. Do not do long sums in your head.
In number entry questions, enter the figure only and check the question for the required format and rounding.
If a trial balance does not agree in a question, the missing figure is the difference between the two columns. Decide the side that balances it.
In multiple response questions, select exactly the number asked for. Check each option against the debit and credit rules.

Practice questions from General ledger accounts and journal entries

Writing Up Ledger Accounts and Balancing Off in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Writing Up Ledger Accounts and Balancing Off: frequently asked questions

How do you balance a ledger account?

Total the debit and credit sides, find the difference and write it on the smaller side as balance c/d. Total both sides with the same figure. Bring the balance down on the opposite side as b/d.

What does balance brought down mean?

It is the closing balance restated at the start of the next period. It sits on the side opposite to the balance carried down, and it becomes the opening balance.

How do I prepare a trial balance from ledger accounts?

List the closing balance of every account, with debit balances in the debit column and credit balances in the credit column. Add each column. They should be equal if postings were balanced.

Does an agreeing trial balance prove the ledger is correct?

No. It shows total debits equal total credits. Errors such as an omitted transaction, a wrong account used or equal errors on both sides can still exist.