LEDGER ACCOUNTS

Ledger is in a book with pages

consecutively numbered. It can also be a
bundle of sheets.
All the items from the journal are recorded
in Ledger Accounts and this process is
known as posting entries from Journal to
Ledger Accounts.
1.ALedger book is FEATURES OF LEDGER
an Accounts bookACCOUNT
to which various transactions of an
enterprise are posted under different Accounts.
2.It follows the double-entry system.
3.Itis also known as the Principal book of Account as it is the book of final entry
of transactions after the journal or all-purpose books.
4.In
the Ledger, all the types of Accounts relating to assets, liabilities, capital and
revenue are maintained.
5.It is the only record of the business transaction classified into relevant
Accounts.
6.It facilitates the preparation of financial statements in future.
• The Different Types of Ledgers
• There are three different types of Ledgers:
• 1. Sales Ledger - A sales Ledger is a book in which a corporation records the sale
of products, services, or the cost of things to clients. The sales revenue and
income statement are depicted in this Ledger.
• 2. Purchase Ledger - A purchase Ledger is a Ledger in which a corporation
records the transactions of purchasing services, products, or goods from other
companies. It allows you to see how much money the company has paid out to
other companies.
• 3. General Ledger - There are two types of the general Ledger: nominal Ledger
and private Ledger. The nominal Ledger records spending, revenue,
depreciation, insurance, and other financial transactions. Private Ledgers contain
private information such as salary, wages, capital, and so on. A private Ledger is
not accessible to everyone.
How Do You Arrange a Trial Balance?
To develop a trial balance, you will require the closing balances of the general ledger accounts.
The trial balance is evolved after posting all financial happenings to the journals and
summarize them on the ledger affirmations. The trial balance is made to make sure that the
debits equal the credits in the scheme of accounts.
1.Ahead you drew off with the trial balance, you have to make sure that every ledger account
is properly balanced. The difference between the sum of all the debit entries and the total sum
of all the credit entries issues the balance.
2.Develop an eight-column worksheet column. The column headers must be for the account
number, account name, and correlating columns for debit and credit balance.
3.For each and every ledger account, transmit to the trial balance worksheet the account
number and account name along with the account balance in the suitable debit or credit
column
4.Stand up the amounts of the debit columns and the credit column. Preferably, the totality
should be the same in a without errors trial balance. When the totals are selfsame, you may
close the trial balance.
Importance of the Ledger Balance
Some banks display both the current and
available balances, so consumers can tell how
much they have to use at their disposal.
Similarly, don't rely on bank statements either. As
noted above, balances displayed on statements
are taken from a ledger balance on the statement
date.