Report of Independent Registered Public Accounting Firm

To the Board of Directors
Dreyfus Balanced Fund, Inc.

We have examined management's assertion about Dreyfus
Balanced Fund, Inc.'s (the "Company") compliance with
the requirements of subsections (b) and (c) of Rule
17f-2 of the Investment Company Act of 1940 ("the Act")
as of August 31, 2003, with respect to securities and
similar investments reflected in the investment account
of the Company, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions
of the Investment Company Act of 1940.  Management is
responsible for the Company's compliance with those
requirements.  Our responsibility is to express an
opinion on management's assertion about the Company's
compliance based on our examination.

Our examination was made in accordance with attestation
standards established by the Public Company Accounting
Oversight Board (United States) and accordingly, included
examining, on a test basis, evidence about the Company's
compliance with those requirements and performing such
other procedures as we considered necessary in the
circumstances. Included among our procedures were the
following tests performed as of August 31, 2003, and
with respect to agreement of security and similar
investments purchases and sales, for the period from
November 30, 2002 (the date of last examination) through
August 31, 2003;

Count and inspection of all securities and similar
investments located in the vault of Mellon Bank in
New York, without prior notice to management;

Confirmation of all securities and similar investments
held by institutions in book entry form (i.e., the Federal
Reserve Bank of Boston, the Depository Trust Company and
the Participant Trust Company);

Reconciliation of confirmation results as to all such
securities and investments to the books and records of
the Company and Mellon Bank;

Confirmation of all repurchase agreements, if any, with
brokers/banks and agreement of underlying collateral with
Mellon Bank's records;

We believe that our examination provides a reasonable
basis for our opinion. Ourexamination does not provide
a legal determination on the Company's compliance with
specified requirements.

In our opinion, management's assertion that Dreyfus
Balanced Fund, Inc. was in compliance with the requirements
of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of August 31, 2003 with respect to
securities and similar investments reflected in the
investment account of the Company is fairly stated, in
all material respects.

This report is intended solely for the information and
use of management of Dreyfus Balanced Fund, Inc. and the

Securities and Exchange Commission and should  not be
used for any other purpose.

                         ERNST & YOUNG LLP

New York, New York
October 14, 2003




                   UNITED STATES
        SECURITIES AND EXCHANGE COMMISSION
               Washington, DC 20549

                   FORM N-17f-2

Certificate of Accounting or Securities and Similar
          Investments in the Custody of
          Management Investment Companies

     Pursuant to Rule 17f-2 [17 CRF 270.17f-2]

1. Investment Company Act File     Date examination
    Number:              	     completed:
    811- 7068           	     10/14/2003

2.   State Identification Number:

AL   AK   AZ   AR   CA   CO
CT   DE   DC   FL   GA   HI
ID   IL   IN   IA   KS   KY
LA   ME   MD   MA   MI   MN
MS   MO   MI   NE   NV   NH
NJ   NM   NY   NC   ND   OH
OK   OR   PA   RI   SC   SD
TN   TX   UT   VT   VA   WA
WV   WI   WY   PUERTO
               RICO

Other
Specify:

3.   Exact name of investment company as specified
     in registration statement:

4.   Address of principal executive office: (number,
     street, city, state, zip code)
     200 Park Avenue, 55th Floor, New York, NY 10166

INSTRUCTIONS

     The Form must be completed by investment companies
     that have custody of securities or similar investments

Investment Company

1.   All items must be completed by the investment
     company.

2.   Give this Form to the independent public accountant
     who, in compliance with Rule 17f-2 under the Act
     and applicable state law, examine securities and
     similar investments in the custody of the investment
     company.

Accountant

3.   Submit this Form to the Securities and Exchange
     Commission and appropriate state securities administrators
     when filing the certificate of accounting required by
     Rule 17f-2 under the Act and applicable state law.  File
     the original and one copy with the Securities and Exchange
     Commissions's principal office in Washington D.C., one
     copy with the regional office for the region in which the
     investment company's principal business operations are
     conducted, and one copy with the appropriate state
     administrator(s), if applicable.

         THIS FORM MUST BE GIVEN TO YOUR
           INDEPENDENT PUBLIC ACCOUNTANT


  Management Statement Regarding Compliance with
                Certain Provisions
       of the Investment Company Act of 1940

We, as members of management of Dreyfus Balanced Fund, Inc.
(the "Company"), are responsible for complying with the
requirements of subsections (b) and (c) of Rule 17f-2,
"Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act of 1940.  We are
also responsible for establishing and maintaining effective
controls over compliance with those requirements.  We have
performed an evaluation of the Company's compliance with
the requirements of subsections (b) and (c) of Rule 17f-2
as of August 31, 2003.

Based on this evaluation, we assert that the Company was
in compliance with the requirements of subsections (b) and
(c) of Rule 17f-2 of the Investment Company Act of 1940 as
of August 31, 2003 with respect to securities and similar
investments reflected in the investment account of the
Company.

Dreyfus Balanced Fund, Inc.
By:

     /s/Jim Windels
     Jim Windels,
     Treasurer
     The Dreyfus Corporation