Many transactions are likely to involve a particular account, and there are a number of entries on both sides of an account. At the end of a day, a week or a month, it would be necessary to know the net effect of various transactions entered in an account. For example, it would be important and useful to know as to what is still due from a customer. We can get this information by working out the difference between the total of debit entries and the total of credit entries in customer's account. This process is termed as 'balancing of an account'.

Where the debit side total is more than the credit side total, as in this case, it is called a debit balance. It is shown, in particulars column, on the credit side by writing 'By Balance c/d' and totals on both sides made equal.

After totaling the two sides of the account, the same balance is shown on the debit side, on the next date, by writing 'To Balance b/d‘ in particulars column. The term c/d is an abbreviation for carried down and b/d is for brought down. Such balancing of accounts is done periodically, say, daily (as in the case of cash account), weekly, monthly or at any other convenient time, as and when needed.

The balancing of Pankaj's Account.

In another situation, the total of the credit side may be more than the total of the debit side. In that case it will be called credit balance. It will be shown on the debit side by writing 'To Balance c/d' in particulars column and the totals of the two sides made equal. After totaling the two sides of the accounts the same balance will be shown on the credit side on the next date, by writing 'By Balance b/d' in particulars column.