<PAGE> PAGE 1
000 A000000 06/30/97
000 C000000 0000811810
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 PRINCIPAL BALANCED FUND, INC.
001 B000000 811-5073
001 C000000 5152475476
002 A000000 THE PRINCIPAL FINANCIAL GROUP
002 B000000 DES MOINES
002 C000000 IA
002 D010000 50392
002 D020000 0200
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
020 A000001 PRINCIPAL FINANCIAL SECURITIES, INC.
020 B000001 75-0839696
020 C000001 15
020 A000002 KEEFE, BRUYETTE & WOODS
020 B000002 13-1964616
020 C000002 5
020 A000003 CANTOR, FITZGERALD & CO. INC.
020 B000003 95-1786286
020 C000003 4
020 A000004 JONES & ASSOCIATES INC.
020 B000004 95-3583143
020 C000004 3
020 A000005 BAIRD, ROBERT W. & CO.
020 B000005 39-6037917
020 C000005 1
020 A000006 JEFFRIES & COMPANY
020 B000006 95-2622900
020 C000006 1
020 A000007 NATWEST SECURITIES CORP.
020 B000007 13-3312778
020 C000007 1
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 30
022 A000001 ASSOCIATES CORPORATION OF NORTH AMERICA
022 B000001 74-1494554
022 C000001 442506
<PAGE> PAGE 2
022 D000001 0
022 A000002 GENERAL ELECTRIC CAPITAL CORP.
022 B000002 13-1500700
022 C000002 14251
022 D000002 0
022 A000003 SALOMON BROTHERS
022 B000003 13-3082694
022 C000003 5601
022 D000003 0
022 A000004 AMERICAN EXPRESS CREDIT CORPORATION
022 B000004 11-1988350
022 C000004 3263
022 D000004 0
022 A000005 BENEFICIAL CORP
022 B000005 51-0003820
022 C000005 2408
022 D000005 0
022 A000006 FORD MOTOR CREDIT CO.
022 B000006 38-1612444
022 C000006 1788
022 D000006 0
022 A000007 GENERAL ELECTRIC CO.
022 B000007 42-1192999
022 C000007 1724
022 D000007 0
022 A000008 CHEVRON OIL FINANCE CO.
022 B000008 25-1215010
022 C000008 1613
022 D000008 0
022 A000009 DONALDSON, LUFKIN & JENRETTE (DLJ)
022 B000009 13-2741729
022 C000009 1198
022 D000009 0
022 A000010 MERRILL LYNCH MONEY MARKET SECURITIES
022 B000010 13-2761776
022 C000010 969
022 D000010 0
023 C000000 475921
023 D000000 1261
027 000000 Y
028 A010000 2729
028 A020000 0
028 A030000 0
028 A040000 808
028 B010000 3355
028 B020000 37
028 B030000 0
028 B040000 1174
028 C010000 2191
028 C020000 0
028 C030000 0
<PAGE> PAGE 3
028 C040000 2225
028 D010000 3175
028 D020000 0
028 D030000 0
028 D040000 897
028 E010000 3508
028 E020000 0
028 E030000 0
028 E040000 1845
028 F010000 4241
028 F020000 0
028 F030000 0
028 F040000 1749
028 G010000 19199
028 G020000 37
028 G030000 0
028 G040000 8698
028 H000000 0
055 A000000 N
055 B000000 Y
056 000000 N
057 000000 N
061 000000 0
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 Y
067 000000 Y
068 A000000 N
068 B000000 N
<PAGE> PAGE 4
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 19594
071 B000000 16144
071 C000000 96402
071 D000000 17
072 A000000 6
072 B000000 1270
072 C000000 628
072 D000000 0
072 E000000 0
072 F000000 298
072 G000000 0
072 H000000 0
072 I000000 0
072 J000000 4
<PAGE> PAGE 5
072 K000000 0
072 L000000 0
072 M000000 4
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 0
072 S000000 0
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 2
072 X000000 308
072 Y000000 0
072 Z000000 1590
072AA000000 4426
072BB000000 0
072CC010000 3620
072CC020000 0
072DD010000 0
072DD020000 0
072EE000000 43
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0066
073 C000000 0.0000
074 A000000 2
074 B000000 0
074 C000000 4757
074 D000000 41810
074 E000000 1687
074 F000000 64174
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 915
074 M000000 0
074 N000000 113345
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 57
074 S000000 0
074 T000000 113288
074 U010000 7153
<PAGE> PAGE 6
074 U020000 0
074 V010000 15.84
074 V020000 0.00
074 W000000 0.0000
074 X000000 7
074 Y000000 0
075 A000000 0
075 B000000 101441
076 000000 0.00
077 A000000 N
SIGNATURE A. S. FILEAN
TITLE V. PRES. & SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 100,020,999
<INVESTMENTS-AT-VALUE> 112,427,518
<RECEIVABLES> 915,433
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,000
<TOTAL-ASSETS> 113,344,951
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 56,873
<TOTAL-LIABILITIES> 56,873
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 94,842,994
<SHARES-COMMON-STOCK> 7,152,926
<SHARES-COMMON-PRIOR> 6,452,156
<ACCUMULATED-NII-CURRENT> 1,613,211
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,425,354
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,406,519
<NET-ASSETS> 113,288,078
<DIVIDEND-INCOME> 628,227
<INTEREST-INCOME> 1,269,706
<OTHER-INCOME> 0
<EXPENSES-NET> (308,366)
<NET-INVESTMENT-INCOME> 1,589,567
<REALIZED-GAINS-CURRENT> 4,425,625
<APPREC-INCREASE-CURRENT> 3,620,209
<NET-CHANGE-FROM-OPS> 9,635,401
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (43,109)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,281,540
<NUMBER-OF-SHARES-REDEEMED> (583,332)
<SHARES-REINVESTED> 2,562
<NET-CHANGE-IN-ASSETS> 20,130,409
<ACCUMULATED-NII-PRIOR> 23,644
<ACCUMULATED-GAINS-PRIOR> 42,838
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 298,358
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 308,366
<AVERAGE-NET-ASSETS> 101,173,393
<PER-SHARE-NAV-BEGIN> 14.44
<PER-SHARE-NII> .22
<PER-SHARE-GAIN-APPREC> 1.19
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.01)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.84
<EXPENSE-RATIO> .62
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
