Balance C/F & Balance B/F Stand For...?
by Hassaan Sayeed
Question:Q: Please explain... What do Balance c/f & Balance b/f stand for?
This is such a great question. So many accounting students see these words over and over again, they think they know what they mean but a lot of the time they actually don't know what they stand for.
Here's the explanation:Balance c/f = Balance carried forward
Balance b/f = Balance brought forward
Both Balance b/f and Balance c/f specifically appear in T-accounts
.But what's the difference between the two (if any)?To explain the difference, here's some typical T-accounts showing where these items appear:
As you can see, Balance b/f
can appear in two places in a T-account.
- It is the term showing the opening balance of the account on a certain date. It is the balance that has been brought forward to the current period from the previous period.
- It is also used to show the closing balance of the account, meaning the balance we will bring forward to the next period.
Sometimes Balance b/f is written as Balance b/d
instead, which stands for “brought down.”
Balance C/FBalance c/f
is used to calculate the closing balance
of the account -
which will be carried forward
to the next period.
It is actually just a balancing line item
within the T-account itself. This balancing line item is always the same amount as the Balance b/f, just inside the T-account on the opposite side.
Some Additional Useful Info About Balance B/F vs Balance C/F:
- Balance b/f is more important than Balance c/f in T-accounts.
- Balance c/f is always on the opposite side of the account's closing balance. So for example, if it's an asset account, the Balance c/f will be on the credit side (right).
- Balance b/f is always on the true or real side of the account. So for example, if it's an asset account, Balance b/f will be on the debit side (left).
I hope this sheds a bit more light on this and helps you progress further with T-accounts
and the rest of your accounting studies.
Add your comments and questions on this topic further below.
And for more info and practice with putting together a T-account including Balance b/f and Balance c/f, check out our main tutorial: Balancing T-Accounts
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