Balancing off accounts

Closing off accounts

Quick reminder of the usual entries.

Assets/Expenses             To increase         Debit

                                      To decrease        Credit

Liabilities / Capital            To increase         Credit

                                        To decrease        Debit

To balance off an account

1. Add the debits up and write it (in rough) in the corner
2. Add the credits up and write it (in rough) in the corner
3. Leaving two lines blank under the side with the most entries draw two totals lines parallel underneath the total
4. Write the biggest total in your total lines
5. The side which was slightly smaller has a balance to carry down.  Above the total write the last date of that period and then Balance c/d (carried down)
6. On the opposite side beneath the total you need to start the next period.  Write the starting date of the next period and write balance b/d (brought down) with the same balancing figure.

Below in an example

The account is now ready for February's entries to be made.  You will need to do this for all accounts.  The balance to be carried / brought down could be on either side.  For accounts where there is no balance to bring down you simply put the total down.