UK Trial Balance - Newbie Question

Mar 31, 2015
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United Kingdom
Hello everyone,

I am quite new to accounting so this might seem obvious to you.

When we are preparing our T-accounts for Trial Balance i.e. when we are working out totals for each account, I noticed for most accounts we work out b/f and c/f and then put b/f into our Trial Balance. However, with some type of accounts we actually work out neither b/f nor c/f and we just put there Tfr to P/L instead. I couldn't find what Tfr means,but I suppose it stands for Transfer to Profit and Loss account. If I am wrong please correct me.
What I really don't understand is, when we use b/f or c/f and when Tfr to P/L.

Any ideas highly appreciated.


VIP Member
Feb 12, 2012
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For those of "Balance sheet" items, such as Assets, Liability and "Owner's Equity (i.e. Capital + reserves + retained earnings), we use their b/f balance acting as the "Opening balance of the trial balance", and their c/f balance acting as the "Closing balance of the trial balance".
In other words, balance sheet item's account balance has "accumulated effect".

For those of "profit and loss" items, such as Revenue and Expenses, their total (current month or year ended) balances will be transferred to "Profit and Loss A/C", and their net balance figure (i.e. earnings or loss) will then be transferred to "retained earnings" (the balance sheet items),
In other words, profit and loss item's account balance has no "accumulated effect".
but the "retained earnings" has "accumulated effect".

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