Writing up and balancing ledger accounts

At the end of each period every ledger account is balanced: the difference between the two sides is carried down to start the next period. These balances then go into the trial balance.

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Writing up an account

Each entry shows the date, the name of the other account in the double entry (the details) and the amount. Debits go on the left, credits on the right.
Example: J Patel's bank account for May. Money in (receipts) is debited; money out (payments) is credited.
Bank account (fictional)
Dr£Cr£
1 May Balance b/d24003 May Rent750
6 May Sales185010 May Purchases2200
15 May A Khan96019 May B Lee1340
28 May Capital300025 May Wages1600
30 May Drawings500
31 May Balance c/d1820
82108210
1 Jun Balance b/d1820

Balancing an account

1. Add up both sides.
2. Write the difference on the smaller side as Balance c/d (carried down), so both sides now have the same total.
3. Write both totals on the same line.
4. Bring the balance down on the opposite side as Balance b/d (brought down) on the first day of the next period.
The bank account has a debit balance of £1820: money in the bank, an asset. A credit balance on a bank account would mean an overdraft.

A supplier's account

B Lee is a credit supplier, so the account is in the payables ledger. Credit purchases are credited; payments and returns to the supplier are debited.
A credit balance of £2470: J Patel owes B Lee this amount, a liability.
Dr£Cr£
19 May Bank13401 May Balance b/d1340
22 May Purchases returns18012 May Purchases2650
31 May Balance c/d2470
39903990
1 Jun Balance b/d2470

From balances to the trial balance

Debit balances: assets, expenses and drawings. Credit balances: liabilities, capital and income.
So the trial balance at 31 May shows bank £1820 in the debit column and B Lee (trade payables) £2470 in the credit column.
If total debits equal total credits, the double entry is arithmetically correct, but some errors (such as omission, commission, principle, original entry and compensating errors) still do not show.
Worked example

A customer's account shows debits of £640, £1250 and £980, and credits of £640 and £110. Balance the account.

  1. Debits = 640 + 1250 + 980 = £2870
  2. Credits = 640 + 110 = £750
  3. Balance c/d of £2120 on the credit side; totals £2870 on both sides
  4. Balance b/d £2120 on the debit side on 1 April

Answer: Debit balance of £2120: the customer owes this amount

Key idea

Total both sides, put the difference on the smaller side as Balance c/d, write equal totals, then bring the balance down on the opposite side. Debit balances are assets, expenses and drawings; credit balances are liabilities, capital and income.

Key words
Ledger
The book containing all the accounts; divided into the nominal (general), receivables and payables ledgers.
Trial balance
A list of ledger balances at a date, used to check that total debits equal total credits.
Drawings
Money or goods taken out of the business by the owner for private use.
Capital
The owner's investment in the business; assets minus liabilities.
Double entry
Recording every transaction with an equal debit and credit.
Asset
A resource owned or controlled by the business, such as equipment, inventory or cash.

All International GCSE Accounting key terms and definitions →

Quick check

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Extra practice

2 more questions

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  1. An account has debit entries of £3100 and £1850 and a credit entry of £4320. What is the balance? (Give the amount.)

    Show the answer

    Answer: 630

    Debits £4950 − credit £4320 = £630 (debit balance).

  2. An account's debits total £5 200 and its credits total £4 750. On which side is the balance brought down?

    1. The credit side
    2. Both sides
    3. It is not brought down
    4. The debit side
    Show the answer

    Answer: The debit side

    Debits are bigger, so the balance b/d is on the debit side.

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Sources and references

Checked by the GCSE-ready editorial team, 17 October 2026. Last updated 2 October 2026. Spotted a mistake? Tell us and we will fix it.

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