Accounting ledger:
A ledger is a book in which a company or organization
writes down the amounts of money it spends and receives. Ledger document is
also known as principle or chief book of accounts. Accounting ledger is document that contains
financial information of organization. Daily activities of business called
transactions which should be recorded. For recording the transactions two steps
are taken:
2. Second step is to post transaction detail in ledger.
Preparation of
accounting ledger:
When you are going to make accounting ledger then you
should aware of some terms that are used in accounting ledger.
Account: A
statement which is created to keep record of transaction is referred as
account.
Posting: Writing
procedure of a ledger is known as posting. Ledger has journals and sub divided
journals.
Journal: There are three types of accounts that
make a journal:
·
Personal account
·
Real account
·
Nominal account
Ledger writing:
Accounts of a business are maintained by ledger. According
to the requirement pages are arranged before ledger writing. Ledger is ruled
where there is a need of determine the balance after transaction mostly in
banks. It is also written in the conditions when balance has to be determined
periodically. T-shape accounts are used for the book keeping. It is written in
this way:
- · On the left hand side record relevant amount of account according to journal is debited
- · On the write hand side record amount of account is credited.
- · On debit side (left hand) start with word “To” while writing each entry.
- · On credit side (write hand) start with “By”.
- · Particular columns are used to provide cross reference
- · Folio column in ledger writing is used to entered page number of journals.
Writing a ledger for accounts is very difficult. For making
accounting ledger, ledger template is best suitable choice. Without using
ledger template is creating a mistake free ledger is almost impossible.
Financial statement should be created by using ledger template. Ledger
templates are available on internet. Select one and download it. You can make
financial statements, general ledgers and supporting journals by using ledger
template. Use ledger template according to your requirement.