<PAGE> PAGE 1
000 B000000 07/31/98
000 C000000 0000811444
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 PRUDENTIAL BALANCED FUND
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001 C000000 9733677525
002 A000000 100 MULBERRY ST.
002 B000000 NEWARK
002 C000000 NJ
002 D010000 07102
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
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007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 PRUDENTIAL INVESTMENTS FUND MANAGEMENT LLC
008 B000001 A
008 C000001 801-31104
008 D010001 NEWARK
008 D020001 NJ
008 D030001 07102
008 A000002 PRUDENTIAL INVESTMENT CORPORATION
008 B000002 S
008 C000002 801-22808
008 D010002 NEWARK
008 D020002 NJ
008 D030002 07102
010 A000001 PRUDENTIAL INVESTMENTS FUND MANAGEMENT LLC
010 B000001 811-31104
010 C010001 NEWARK
010 C020001 NJ
010 C030001 07102
011 A000001 PRUDENTIAL INVESTMENT MANAGEMENT SERIES LLC
011 B000001 8-27154
<PAGE> PAGE 2
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10292
011 A000002 DELETE
012 A000001 PRUDENTIAL MUTUAL FUND SERVICES, LLC
012 B000001 85-4110019
012 C010001 NEW BRUNSWICK
012 C020001 NJ
012 C030001 08906
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
014 A000001 PRUDENTIAL SECURITIES INCORPORATED
014 B000001 8-27154
014 A000002 PRUCO SECURITIES CORP.
014 B000002 8-16402
014 A000003 PRUDENTIAL INVESTMENT MANANGEMENT SVCS. LLC
014 B000003 8-36540
015 A000001 STATE STREET BANK AND TRUST CO.
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02171
015 E010001 X
015 A000002 CANADA TRUSTCO MORTGAGE COMPANY
015 B000002 S
015 C010002 TORONTO
015 D010002 CANADA
015 E040002 X
015 A000003 BANQUE PARIBAS
015 B000003 S
015 C010003 PARIS
015 D010003 FRANCE
015 E040003 X
015 A000004 STATE STREET BANK AND TRUST CO.
015 B000004 S
015 C010004 LONDON
015 D010004 UNITED KINGDOM
015 E040004 X
015 A000005 WESTPAC BANKING CORP.
015 B000005 S
015 C010005 SYDNEY
015 D010005 AUSTRALIA
015 E040005 X
015 A000006 GIROCREDIT BANK AKTIENGESELLSCHAFT DER SPARKA
015 B000006 S
015 C010006 VIENNA
015 D010006 AUSTRIA
015 E040006 X
015 A000007 GENERALE BANK
<PAGE> PAGE 3
015 B000007 S
015 C010007 BRUSSELS
015 D010007 BELGIUM
015 E040007 X
015 A000008 DEN DANSKE BANK
015 B000008 S
015 C010008 COPENHAGEN
015 D010008 DENMARK
015 E040008 X
015 A000009 MERITA BANK LIMITED
015 B000009 S
015 C010009 HELSINKI
015 D010009 FINLAND
015 E040009 X
015 A000010 DRESDNER BANK AG
015 B000010 S
015 C010010 FRANKFURT
015 D010010 GERMANY
015 E040010 X
015 A000011 THE HONG KONG AND SHANGHAI BANKING CORP. LTD.
015 B000011 S
015 C010011 SHANGHAI
015 D010011 CHINA
015 E040011 X
015 A000012 BANK OF IRELAND
015 B000012 S
015 C010012 DUBLIN
015 D010012 IRELAND
015 E040012 X
015 A000013 MORGAN GUARANTY TRUST CO.
015 B000013 S
015 C010013 MILAN
015 D010013 ITALY
015 E040013 X
015 A000014 SUMITOMO TRUST & BANKING CO., LTD.
015 B000014 S
015 C010014 TOKYO
015 D010014 JAPAN
015 E040014 X
015 A000015 SEOULBANK
015 B000015 S
015 C010015 SEOUL
015 D010015 KOREA
015 E040015 X
015 A000016 STANDARD CHARTERED BANK
015 B000016 S
015 C010016 HONG KONG
015 D010016 HONG KONG
015 E040016 X
015 A000017 STANDARD CHARTERED BANK
015 B000017 S
<PAGE> PAGE 4
015 C010017 KUALA LUMPUR
015 D010017 MALAYSIA
015 E040017 X
015 A000018 CITIBANK MEXICO, N.A.
015 B000018 S
015 C010018 MEXICO CITY
015 D010018 MEXICO
015 E040018 X
015 A000019 MEESPIERSON N.V.
015 B000019 S
015 C010019 AMSTERDAM
015 D010019 NETHERLANDS
015 E040019 X
015 A000020 ANZ BANKING GROUP (NEW ZEALAND) LIMITED
015 B000020 S
015 C010020 WELLINGTON
015 D010020 NEW ZEALAND
015 E040020 X
015 A000021 CHRISTIANIA BANK OG KREDITKASSE
015 B000021 S
015 C010021 OLSO
015 D010021 NORWAY
015 E040021 X
015 A000022 BANCO COMERICAL PORTUGUES
015 B000022 S
015 C010022 LISBON
015 D010022 PORTUGAL
015 E040022 X
015 A000023 THE DEVELOPMENT BANK OF SINGAPORE, LTD.
015 B000023 S
015 C010023 SINGAPORE
015 D010023 SINGAPORE
015 E040023 X
015 A000024 BANCO SANTANDER, S.A.
015 B000024 S
015 C010024 MADRID
015 D010024 SPAIN
015 E040024 X
015 A000025 SKANDINAVISKA ENSKILDA BANKEN
015 B000025 S
015 C010025 STOCKOLM
015 D010025 SWEDEN
015 E040025 X
015 A000026 UNION BANK OF SWITZERLAND
015 B000026 S
015 C010026 ZURICH
015 D010026 SWITZERLAND
015 E040026 X
015 A000027 STANDARD CHARTERED BANK
015 B000027 S
015 C010027 BANGKOK
<PAGE> PAGE 5
015 D010027 THAILAND
015 E040027 X
015 A000028 CITIBANK, N.A.
015 B000028 S
015 C010028 BUENOS AIRES
015 D010028 ARGENTINA
015 E040028 X
015 A000029 CITIBANK, N.A.
015 B000029 S
015 C010029 SAO PAULO
015 D010029 BRAZIL
015 E040029 X
015 A000030 CITIBANK, N.A.
015 B000030 S
015 C010030 SANTIAGO
015 D010030 CHILE
015 E040030 X
015 A000031 CITITRUST COLUMBIA S.A. SOCIEDAD FIDUCIARIA
015 B000031 S
015 C010031 BOGOTA
015 D010031 COLUMBIA
015 E040031 X
015 A000032 CESKOCLOVENSKA ONCHODNI BANKA A.S.
015 B000032 S
015 C010032 PRAGUE
015 D010032 CZECH REPUBLIC
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015 A000033 NATIONAL BANK OF GREECE S.A.
015 B000033 S
015 C010033 ATHENS
015 D010033 GREECE
015 E040033 X
015 A000034 CITIBANK BUDAPEST RT.
015 B000034 S
015 C010034 BUDAPEST
015 D010034 HUNGARY
015 E040034 X
015 A000035 THE HONG KONG & SHANGHAI BANKING CORP. LTD.
015 B000035 S
015 C010035 BOMBAY
015 D010035 INDIA
015 E040035 X
015 A000036 STANDARD CHARTERED BANK
015 B000036 S
015 C010036 JAKARTA
015 D010036 INDONESIA
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015 A000037 BANK HAPOALIM B.M.
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<PAGE> PAGE 6
015 E040037 X
015 A000038 THE DAIWA BANK, LIMITED
015 B000038 S
015 C010038 TOKYO
015 D010038 JAPAN
015 E040038 X
015 A000039 DEUTSCHE BANK AG
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015 D010039 PAKISTAN
015 E040039 X
015 A000040 CITIBANK, N.A.
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015 C010040 LIMA
015 D010040 PERU
015 E040040 X
015 A000041 STANDARD CHARTERED BANK
015 B000041 S
015 C010041 MANILA
015 D010041 PHILIPPINES
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015 A000042 CITIBANK POLAND, S.A.
015 B000042 S
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015 A000043 CEKOSLOVENSKA OBCHODNA BANKA A.S.
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015 A000046 CITIBANK, N.A.
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015 E040046 X
015 A000047 CITIBANK, N.A.
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<PAGE> PAGE 7
015 A000048 CITIBANK, N.A.
015 B000048 S
015 C010048 MONTEVIDEO
015 D010048 URUGUAY
015 E040048 X
015 A000049 STANDARD CHARTERED BANK
015 B000049 S
015 C010049 DHAKA
015 D010049 BANGLADESH
015 E040049 X
015 A000050 THE EUROCLEAR SYSTEM
015 B000050 S
015 C010050 N/A
015 D010050 TRANSNATIONAL
015 E040050 X
015 A000051 BARCLAYS BANK PLC
015 B000051 S
015 C010051 NICOSIA
015 D010051 CYPRUS
015 E040051 X
015 A000052 CITIBANK, N.A.
015 B000052 S
015 C010052 QUITO
015 D010052 ECUADOR
015 E040052 X
015 A000053 NATIONAL BANK OF EGYPT
015 B000053 S
015 C010053 CAIRO
015 D010053 EGYPT
015 E040053 X
015 A000054 BARCLAYS BANK OF GHANA
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015 C010054 ACCRA
015 D010054 GHANA
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015 A000055 DEUTSCHE BANK AG
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015 C010055 MUMBAI
015 D010055 INDIA
015 E040055 X
015 A000056 SOCIETE GENERALE DE BANQUES
015 B000056 S
015 C010056 ABIDJAN
015 D010056 IVORY COAST
015 E040056 X
015 A000057 THE FUJI BANK, LIMITED
015 B000057 S
015 C010057 TOKYO
015 D010057 JAPAN
015 E040057 X
015 A000058 THE BRITISH BANK OF THE MIDDLE EAST
<PAGE> PAGE 8
015 B000058 S
015 C010058 AMMAN
015 D010058 JORDAN
015 E040058 X
015 A000059 BARCLAYS BANK OF KENYA LIMITED
015 B000059 S
015 C010059 NAIROBI
015 D010059 KENYA
015 E040059 X
015 A000060 THE BRITISH BANK OF THE MIDDLE EAST
015 B000060 S
015 C010060 BEIRUT
015 D010060 LEBANON
015 E040060 X
015 A000061 BANQUE COMMERCIALE DU MAROC
015 B000061 S
015 C010061 CASABLANCA
015 D010061 MOROCCO
015 E040061 X
015 A000062 CREDIT SUISSE FIRST BOSTON, ZURICH
015 B000062 S
015 C010062 MOSCOW
015 D010062 RUSSIA
015 E040062 X
015 A000063 THE HONGKONG AND SHANGHAI BANKING CORP. LTD.
015 B000063 S
015 C010063 COLOMBO
015 D010063 SRI LANKA
015 E040063 X
018 000000 Y
019 A000000 Y
019 B000000 99
019 C000000 PRUDENTIAL
020 A000001 BEAR, STEARNS & COMPANY
020 B000001 13-3299429
020 C000001 173
020 A000002 LEHMAN BROS., INC.
020 B000002 13-2518466
020 C000002 116
020 A000003 GOLDMAN SACHS & CO.
020 B000003 13-5108880
020 C000003 104
020 A000004 PRUDENTIAL SECURITIES INCORPORATED
020 B000004 22-2343366
020 C000004 103
020 A000005 MONTGOMERY SECURITIES
020 B000005 94-1701676
020 C000005 91
020 A000006 PAINE WEBBER INCORPORATED
020 B000006 13-2638166
020 C000006 68
<PAGE> PAGE 9
020 A000007 BERSTEIN (SANFORD C.) & CO., INC.
020 B000007 13-2625874
020 C000007 62
020 A000008 WEEDEN & CO.,
020 B000008 13-3364318
020 C000008 57
020 A000009 OPPENHEIMER & CO., INC.
020 B000009 13-2527171
020 C000009 53
020 A000010 SMITH BARNEY INC.
020 B000010 13-3371860
020 C000010 50
021 000000 1650
022 A000001 BEAR, STEARNS SECURITIES CORP.
022 B000001 13-3299429
022 C000001 6465042
022 D000001 8166
022 A000002 CREDIT SUISSE FIRST BOSTON CORP.
022 B000002 13-5659485
022 C000002 5046024
022 D000002 81516
022 A000003 SALOMON BROTHERS
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022 C000003 3046249
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022 C000004 2568869
022 D000004 0
022 A000005 SBC WARBURG DILLON READ INC.
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022 C000005 2307646
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022 A000006 MORGAN (J.P.) SECURITIES INC.,
022 B000006 13-3224016
022 C000006 2009558
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022 C000007 1842572
022 D000007 96008
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022 B000008 13-3873456
022 C000008 752652
022 D000008 491
022 A000009 LEHMAN BROS., INC.
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022 C000009 613928
022 D000009 60038
022 A000010 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000010 13-5674085
<PAGE> PAGE 10
022 C000010 344512
022 D000010 265952
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025 B000003 13-3340045
025 C000003 D
025 D000003 23900
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025 D000004 32112
025 A000005 BEAR STEARNS & CO. INC.
025 B000005 13-5659485
025 C000005 E
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025 B000006 13-2518466
025 C000006 D
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025 A000007 SALOMON BROTHERS
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<PAGE> PAGE 11
028 B040000 33590
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<PAGE> PAGE 12
047 000000 Y
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054 L000000 N
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<PAGE> PAGE 13
060 B000000 Y
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070 J020000 Y
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070 L020000 Y
<PAGE> PAGE 14
070 M010000 Y
070 M020000 Y
070 N010000 N
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<PAGE> PAGE 15
073 B000000 1.6600
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<PAGE> PAGE 16
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE CO.
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SIGNATURE GRACE TORRES
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICL6
<CIK>
<NAMETHE PRUDENTIAL BALANCED FUND
<SERIES>
<NUMB001
<NAMTHE PRUDENTIAL BALANCED FUND (CLASS A)
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<SHARES-COMMON-PRIOR> 90,069,241
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<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 1,159,915,751
<DIVIDEND-INCOME> 8,602,741
<INTEREST-INCOME> 36,163,798
<OTHER-INCOME> 0
<EXPENSES-NET> 18,472,866
<NET-INVESTMENT-INCOME> 26,293,673
<REALIZED-GAINS-CURRENT> 155,549,803
<APPREC-INCREASE-CURRENT> (126,216,321)
<NET-CHANGE-FROM-OPS> 55,627,155
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (26,895,551)
<DISTRIBUTIONS-OF-GAINS> (142,998,613)
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<NUMBER-OF-SHARES-SOLD> 195,965,154
<NUMBER-OF-SHARES-REDEEMED> (341,566,835)
<SHARES-REINVESTED> 160,126,884
<NET-CHANGE-IN-ASSETS> (99,741,806)
<ACCUMULATED-NII-PRIOR> 1,986,876
<ACCUMULATED-GAINS-PRIOR> 75,014,815
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7,857,149
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 18,472,866
<AVERAGE-NET-ASSETS> 493,828,000
<PER-SHARE-NAV-BEGIN> 14.01
<PER-SHARE-NII> 0.33
<PER-SHARE-GAIN-APPREC> 0.29
<PER-SHARE-DIVIDEND> (0.34)
<PER-SHARE-DISTRIBUTIONS> (1.66)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.63
<EXPENSE-RATIO> 1.19
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICL6
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<NUMB002
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<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JULY-31-1998
<PERIOD-END> JULY-31-1998
<INVESTMENTS-AT-COST> 1,096,772,469
<INVESTMENTS-AT-VALUE> 1,151,099,452
<RECEIVABLES> 18,953,743
<ASSETS-OTHER> 274,658
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,170,327,853
<PAYABLE-FOR-SECURITIES> 6,728,546
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,683,556
<TOTAL-LIABILITIES> 10,412,102
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,016,538,103
<SHARES-COMMON-STOCK> 92,023,902
<SHARES-COMMON-PRIOR> 90,069,241
<ACCUMULATED-NII-CURRENT> 1,384,812
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 87,665,853
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 54,326,983
<NET-ASSETS> 1,159,915,751
<DIVIDEND-INCOME> 8,602,741
<INTEREST-INCOME> 36,163,798
<OTHER-INCOME> 0
<EXPENSES-NET> 18,472,866
<NET-INVESTMENT-INCOME> 26,293,673
<REALIZED-GAINS-CURRENT> 155,549,803
<APPREC-INCREASE-CURRENT> (126,216,321)
<NET-CHANGE-FROM-OPS> 55,627,155
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (26,895,551)
<DISTRIBUTIONS-OF-GAINS> (142,998,613)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 195,965,154
<NUMBER-OF-SHARES-REDEEMED> (341,566,835)
<SHARES-REINVESTED> 160,126,884
<NET-CHANGE-IN-ASSETS> (99,741,806)
<ACCUMULATED-NII-PRIOR> 1,986,876
<ACCUMULATED-GAINS-PRIOR> 75,014,815
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7,857,149
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 18,472,866
<AVERAGE-NET-ASSETS> 578,432,000
<PER-SHARE-NAV-BEGIN> 13.96
<PER-SHARE-NII> 0.24
<PER-SHARE-GAIN-APPREC> 0.27
<PER-SHARE-DIVIDEND> (0.24)
<PER-SHARE-DISTRIBUTIONS> (1.66)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.57
<EXPENSE-RATIO> 1.94
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICL6
<CIK>
<NAMETHE PRUDENTIAL BALANCED FUND
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<NUMB003
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<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JULY-31-1998
<PERIOD-END> JULY-31-1998
<INVESTMENTS-AT-COST> 1,096,772,469
<INVESTMENTS-AT-VALUE> 1,151,099,452
<RECEIVABLES> 18,953,743
<ASSETS-OTHER> 274,658
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,170,327,853
<PAYABLE-FOR-SECURITIES> 6,728,546
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,683,556
<TOTAL-LIABILITIES> 10,412,102
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,016,538,103
<SHARES-COMMON-STOCK> 92,023,902
<SHARES-COMMON-PRIOR> 90,069,241
<ACCUMULATED-NII-CURRENT> 1,384,812
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 87,665,853
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 54,326,983
<NET-ASSETS> 1,159,915,751
<DIVIDEND-INCOME> 8,602,741
<INTEREST-INCOME> 36,163,798
<OTHER-INCOME> 0
<EXPENSES-NET> 18,472,866
<NET-INVESTMENT-INCOME> 26,293,673
<REALIZED-GAINS-CURRENT> 155,549,803
<APPREC-INCREASE-CURRENT> (126,216,321)
<NET-CHANGE-FROM-OPS> 55,627,155
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (26,895,551)
<DISTRIBUTIONS-OF-GAINS> (142,998,613)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 195,965,154
<NUMBER-OF-SHARES-REDEEMED> (341,566,835)
<SHARES-REINVESTED> 160,126,884
<NET-CHANGE-IN-ASSETS> (99,741,806)
<ACCUMULATED-NII-PRIOR> 1,986,876
<ACCUMULATED-GAINS-PRIOR> 75,014,815
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7,857,149
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 18,472,866
<AVERAGE-NET-ASSETS> 8,175,000
<PER-SHARE-NAV-BEGIN> 13.96
<PER-SHARE-NII> 0.24
<PER-SHARE-GAIN-APPREC> 0.27
<PER-SHARE-DIVIDEND> (0.24)
<PER-SHARE-DISTRIBUTIONS> (1.66)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.57
<EXPENSE-RATIO> 1.94
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICL6
<CIK>
<NAMETHE PRUDENTIAL BALANCED FUND
<SERIES>
<NUMB004
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<S> <C>
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<FISCAL-YEAR-END> JULY-31-1998
<PERIOD-END> JULY-31-1998
<INVESTMENTS-AT-COST> 1,096,772,469
<INVESTMENTS-AT-VALUE> 1,151,099,452
<RECEIVABLES> 18,953,743
<ASSETS-OTHER> 274,658
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,170,327,853
<PAYABLE-FOR-SECURITIES> 6,728,546
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,683,556
<TOTAL-LIABILITIES> 10,412,102
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,016,538,103
<SHARES-COMMON-STOCK> 92,023,902
<SHARES-COMMON-PRIOR> 90,069,241
<ACCUMULATED-NII-CURRENT> 1,384,812
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 87,665,853
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 54,326,983
<NET-ASSETS> 1,159,915,751
<DIVIDEND-INCOME> 8,602,741
<INTEREST-INCOME> 36,163,798
<OTHER-INCOME> 0
<EXPENSES-NET> 18,472,866
<NET-INVESTMENT-INCOME> 26,293,673
<REALIZED-GAINS-CURRENT> 155,549,803
<APPREC-INCREASE-CURRENT> (126,216,321)
<NET-CHANGE-FROM-OPS> 55,627,155
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (26,895,551)
<DISTRIBUTIONS-OF-GAINS> (142,998,613)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 195,965,154
<NUMBER-OF-SHARES-REDEEMED> (341,566,835)
<SHARES-REINVESTED> 160,126,884
<NET-CHANGE-IN-ASSETS> (99,741,806)
<ACCUMULATED-NII-PRIOR> 1,986,876
<ACCUMULATED-GAINS-PRIOR> 75,014,815
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7,857,149
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 18,472,866
<AVERAGE-NET-ASSETS> 128,358,000
<PER-SHARE-NAV-BEGIN> 14
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0)
<PER-SHARE-DISTRIBUTIONS> (2)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13
<EXPENSE-RATIO> 1
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Prudential Balanced Fund, Inc.
For the Annual period ended 7/31/98
File number 811-5055
SUB-ITEM 77J
Reclassification of Capital Accounts
The Fund accounts and reports for distributions to
shareholders in accordance with the American Institute of
Certified Public Accountants' Statement of Position 93-2:
Determination, Disclosure, and Financial Statement
Presentation of Income; Capital Gain, and Return of Capital
Distributions by Investment Companies. The effect of
applying this statement was to decrease undistributed net
investment income by $186, increase accumulated net realized
gain on investments by $99,848 and decrease paid in capital
by $99,662 for the year ended July 31, 1998.
Net realized gains and net assets were not affected by this
change
.
For the fiscal year ended July 31, 1998.
File number 811-5055
SUB-ITEM 77-0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
I.
1. Name of Issuer
Petro Geo-Services ASA
2. Date of Purchase
3/30/98
3. Number of Securities Purchased
3,900
4. Dollar Amount of Purchase
$3,888,690
5. Price Per Unit
$997.10
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch.
II.
1. Name of Issuer
Petro Geo-Services ASA
2. Date of Purchase
3/30/98
3. Number of Securities Purchased
5,000
4. Dollar Amount of Purchase
$4,979,050
5. Price Per Unit
$1000
6. Name of Underwriter or Dealer
From whom Purchased:
Merrill Lynch
T:/martin/N-SAR/AF/77O.doc
September 17, 1998
To the Shareholders and Board of Directors of
Prudential Balanced Fund
In planning and performing our audit of the financial
statements of Prudential Balanced Fund (the "Fund") for
the year ended July 31, 1998, we considered its internal
control, including control activities for safeguarding
securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-
SAR, not to provide assurance on internal control.
The management of the Fund is responsible for establishing
and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an
audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly
presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or
disposition.
Because of inherent limitations in internal control,
errors or fraud may occur and not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risk that it may become
inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of internal control would not
necessarily disclose all matters in internal control that
might be material weaknesses under standards established
by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or
operation of one or more of the internal control
components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in
amounts that would be material in relation to the
financial statements being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. However,
we noted no matters involving internal control and its
operation, including controls for safeguarding securities,
that we consider to be material weaknesses as defined
above as of July 31, 1998.
This report is intended solely for the information and use
of management and the Board of Directors of the Fund and
the Securities and Exchange Commission.
PricewaterhouseCoopers LLP
