If the credit total is higher, what would be carried down at the end of an accounting period?

• A. The Debit amount would be carried down at the end of an accounting period
• B. The Credit amount would be carried down at the end of an accounting period
• C. The Balance would be carried down
• D. The Difference would be carried forward

Answer: (A)

When closing ledger accounts, you balance the two sides by bringing the smaller side up to the larger total. The difference between the debit and credit sides becomes the closing balance and is carried down to the next period on the opposite side.

If the credit total is higher, the account has a credit balance. To balance the account, you place the difference on the debit side as a balance c/d. That debit amount is then carried down (and carried forward in the next period as balance b/d on the debit side).

Example: Debits = 120, Credits = 180. Difference = 60. You write 60 on the debit side as balance c/d. Totals are now equal at 180. In the next period, 60 is carried forward as the opening debit balance (balance b/d) on the debit side.

So, the debit amount would be carried down.