Balance B/F and Balance C/F

Balance C/F: Balance carried forward means the ending balance of the account which has to carry to the next accounting period.

The balance in each account is added and deduct through debit and credit during the accounting period. As at the end of the accounting period, the balance accounts need to bring balance to the next period. This total balance is called the carried forward balance.

Date Description Debit Credit Balance
Jan Capital invest 10,000 10,000
Feb Purchase Fixed Asset 2,000 8,000
Mar Cash Receipt 1,000 9,000
June Purchase Inventory 5,000 4,000
Sep Cash Receipt 8,000 12,000
Dec Pay for rent 1,000 11,000
Balance Carry Forward 11,000

Balance B/F: Balance Brought Forward means the beginning balance of balance sheet accounts that have been brought from a prior period. Usually, the balance sheet account needs to carry from one period to another. For example, the ending cash balance on 31 Dec 202X will become the opening balance on 01 Jan 202X+1. The opening balance on 01 Jan 202X+1 is the balance brought forward

Date Description Debit Credit Balance
Balance Brough Forward 11,000
Mar Cash Receipt 4,000 15,000
June Purchase Inventory 5,000 10,000