Ankit Lal Karn, ACW Accounts At EDUMARZ
Ledger is prepared after transactions are entered in the journal.
individual account is opened for transactions.
For example – a journal entry is
Cash A/C dr
To capital A/C
Here, cash A/C & capital A/c are opened.
Example 2) – goods are purchased on cash, then entry will be
Purchase A/C dr
To Cash A/C
Now only Purchase A/C will be opened as we have already opened cash A/c.
Generally, ledgers are prepared inbound register, cards or separate sheets can be prepared in loose leaf manner.
Ledger plays a very important role in the process of accounting.
The net result of any account can also be ascertained after preparing the ledger.
For example – management may want to know at a certain date amount due to creditors,
This can only be ascertained when the ledgers account is prepared.
An account can be debited or credited by following the rules of accounting.
FORMAT OF LEDGER CONTAINS-
Dr. Side:-
Date
Particular
J.F
Amount
Cr. Side
Date
Particular
J.F
Amount