diff --git a/app/Services/ManualBalanceAdjuster.php b/app/Services/ManualBalanceAdjuster.php
index 758ae109..88156f23 100644
--- a/app/Services/ManualBalanceAdjuster.php
+++ b/app/Services/ManualBalanceAdjuster.php
@@ -2,18 +2,17 @@
 
 namespace App\Services;
 
-use App\Models\AccountBalance;
+use App\Models\Account;
 use App\Models\Transaction;
-use Illuminate\Support\Carbon;
 
 class ManualBalanceAdjuster
 {
     /**
-     * Reverse a deleted transaction's effect on its manual account's current balance.
+     * Reverse a deleted transaction's effect on its manual account's balances.
      *
-     * Adjusts today's balance by the inverse of the transaction amount: an expense
-     * (negative amount) increases the balance, income (positive amount) decreases it.
-     * Connected accounts are skipped because their balances come from bank sync.
+     * Subtracts the transaction amount from its own day and every later
+     * snapshot, mirroring the forward shift applied on creation. Connected
+     * accounts are skipped because their balances come from bank sync.
      */
     public function reverseDeletedTransaction(Transaction $transaction): void
     {
@@ -23,31 +22,20 @@ class ManualBalanceAdjuster
             return;
         }
 
-        $today = Carbon::now()->toDateString();
-
-        $currentBalance = $account->balances()
-            ->where('balance_date', '<=', $today)
-            ->orderByDesc('balance_date')
-            ->value('balance') ?? 0;
-
-        AccountBalance::updateOrCreate(
-            [
-                'account_id' => $account->id,
-                'balance_date' => $today,
-            ],
-            [
-                'balance' => $currentBalance - $transaction->amount,
-            ],
+        $this->shiftBalancesFrom(
+            $account,
+            $transaction->transaction_date->toDateString(),
+            -$transaction->amount,
         );
     }
 
     /**
-     * Apply a newly created transaction to its manual account's balance.
+     * Apply a newly created transaction to its manual account's balances.
      *
-     * Adjusts the balance on the transaction's own date. The base is that day's
-     * balance if one exists, otherwise the closest earlier balance, otherwise
-     * zero (the first transaction on the account). Connected accounts are
-     * skipped because their balances come from bank sync.
+     * Seeds a snapshot on the transaction's own date (from the carried-forward
+     * balance when none exists yet), then shifts that day and every later
+     * snapshot by the transaction amount. Connected accounts are skipped
+     * because their balances come from bank sync.
      */
     public function applyCreatedTransaction(Transaction $transaction): void
     {
@@ -59,19 +47,36 @@ class ManualBalanceAdjuster
 
         $transactionDate = $transaction->transaction_date->toDateString();
 
-        $baseBalance = $account->balances()
-            ->where('balance_date', '<=', $transactionDate)
+        $account->balances()->firstOrCreate(
+            ['balance_date' => $transactionDate],
+            ['balance' => $this->carriedForwardBalance($account, $transactionDate)],
+        );
+
+        $this->shiftBalancesFrom($account, $transactionDate, $transaction->amount);
+    }
+
+    /**
+     * Shift every balance snapshot on or after the given date by the delta.
+     *
+     * Balances carry forward, so a retroactive change must move the
+     * transaction's own day and every later snapshot (such as today's current
+     * balance) by the same amount to keep the running balance consistent.
+     */
+    private function shiftBalancesFrom(Account $account, string $fromDate, int $delta): void
+    {
+        $account->balances()
+            ->where('balance_date', '>=', $fromDate)
+            ->increment('balance', $delta);
+    }
+
+    /**
+     * The most recent balance strictly before the given date, or 0 if none.
+     */
+    private function carriedForwardBalance(Account $account, string $date): int
+    {
+        return $account->balances()
+            ->where('balance_date', '<', $date)
             ->orderByDesc('balance_date')
             ->value('balance') ?? 0;
-
-        AccountBalance::updateOrCreate(
-            [
-                'account_id' => $account->id,
-                'balance_date' => $transactionDate,
-            ],
-            [
-                'balance' => $baseBalance + $transaction->amount,
-            ],
-        );
     }
 }
diff --git a/resources/js/components/accounts/balances-modal.tsx b/resources/js/components/accounts/balances-modal.tsx
index f3367887..bde25549 100644
--- a/resources/js/components/accounts/balances-modal.tsx
+++ b/resources/js/components/accounts/balances-modal.tsx
@@ -312,7 +312,10 @@ export function BalancesModal({
                                         </TableRow>
                                     ) : (
                                         balances.map((balance) => (
-                                            <TableRow key={balance.id}>
+                                            <TableRow
+                                                key={balance.id}
+                                                className="[&>td]:align-middle"
+                                            >
                                                 <TableCell>
                                                     {formatDate(
                                                         balance.balance_date,
diff --git a/tests/Feature/TransactionTest.php b/tests/Feature/TransactionTest.php
index 25618126..b9a92b25 100644
--- a/tests/Feature/TransactionTest.php
+++ b/tests/Feature/TransactionTest.php
@@ -290,19 +290,18 @@ test('deleting a manual account income decreases the current balance when reques
     ]);
 });
 
-test('deleting a transaction creates a current balance from the latest known balance', function () {
+test('deleting a past-dated transaction reverses it on that date and every later balance', function () {
     $user = User::factory()->onboarded()->create();
     $account = Account::factory()->create(['user_id' => $user->id]);
 
-    $account->balances()->create([
-        'balance_date' => now()->subDays(5)->toDateString(),
-        'balance' => 50000,
-    ]);
+    $account->balances()->create(['balance_date' => '2025-11-10', 'balance' => 5000]);
+    $account->balances()->create(['balance_date' => '2025-11-11', 'balance' => 5000]);
 
     $transaction = Transaction::factory()->create([
         'user_id' => $user->id,
         'account_id' => $account->id,
         'amount' => -1500,
+        'transaction_date' => '2025-11-10',
     ]);
 
     actingAs($user)
@@ -311,8 +310,13 @@ test('deleting a transaction creates a current balance from the latest known bal
 
     $this->assertDatabaseHas('account_balances', [
         'account_id' => $account->id,
-        'balance_date' => now()->toDateString(),
-        'balance' => 51500,
+        'balance_date' => '2025-11-10',
+        'balance' => 6500,
+    ]);
+    $this->assertDatabaseHas('account_balances', [
+        'account_id' => $account->id,
+        'balance_date' => '2025-11-11',
+        'balance' => 6500,
     ]);
 });
 
@@ -421,6 +425,35 @@ test('creating a transaction creates a balance on its date from the closest earl
     ]);
 });
 
+test('creating a past-dated transaction updates that date and every later balance', function () {
+    $user = User::factory()->onboarded()->create();
+    $account = Account::factory()->create(['user_id' => $user->id]);
+
+    $account->balances()->create(['balance_date' => '2025-11-10', 'balance' => 1000]);
+    $account->balances()->create(['balance_date' => '2025-11-11', 'balance' => 1000]);
+
+    actingAs($user)->postJson(route('transactions.store'), [
+        'account_id' => $account->id,
+        'description' => 'encrypted_description',
+        'transaction_date' => '2025-11-10',
+        'amount' => -500,
+        'currency_code' => 'USD',
+        'source' => 'manually_created',
+        'update_balance' => true,
+    ])->assertCreated();
+
+    $this->assertDatabaseHas('account_balances', [
+        'account_id' => $account->id,
+        'balance_date' => '2025-11-10',
+        'balance' => 500,
+    ]);
+    $this->assertDatabaseHas('account_balances', [
+        'account_id' => $account->id,
+        'balance_date' => '2025-11-11',
+        'balance' => 500,
+    ]);
+});
+
 test('creating the first transaction on an account creates a balance equal to its amount', function () {
     $user = User::factory()->onboarded()->create();
     $account = Account::factory()->create(['user_id' => $user->id]);