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Ledger

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CARMEN MUTIA
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18 views

Ledger

Uploaded by

CARMEN MUTIA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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LILIAN M.

AMPO
Masterand
⦿ The ledger is the principal book of
accounting system. It contains
different accounts where
transactions relating to that
account are recorded .A ledger is
the collection of all the accounts
,debited or credited ,in the journal
proper and various special journal.
⦿ A ledger is very useful and is of
utmost importance in the
organization. The net result of all
transactions in respect of a
particular account on a given date
can ascertained only from the
ledger
⦿ Name of the
account

D C
r
date particulars J.F Amount date particulars J.F r
amount
⦿ Title of the account : The name of the
item is
written at the top of the format as
the
title of the account .the title of the
account
ends with suffix account
⦿ Dr :Dr means debit side of the
account that is left side and Cr
means credit side of the account
⦿ Particulars :Name of the item with
⦿ Journal folio : It records the page
number of the original book of entry
on which relevant transaction is
recorded .this column is filled up at
the time of posting
⦿ Amount :This column records the
amount in numerical figure,
corresponding to what has been
entered in the amount column of the
original book of entry
⦿ The journal is the book of first
entry ;The ledger is the book of
second entry

⦿ The journal is the bookfor


chronological record ;The ledger is
the book for analytical record
⦿ The journal. as a book of source
entry ,gets greater importance as legal
evidence than the ledger
⦿ Transaction is the basis of
classification of data within the
journal ; account is the basis
classification of data within the
ledger
⦿ Process of recording in the journal is
called journalising ; the process of
recording in the ledger is known as
posting
⦿ Ledger accounts are classified in to
five categories namely assets,
liabilities, capital, revenues/ gains,
and expense losses. All these
accounts may further be put in to
two groups, i.e. permanent
accounts and temporary
accounts .All permanent accounts
are balanced and carried forward to
the next accounting period .
⦿ The temporary accounts are closed
at the end of the accounting period
by transferring them to the trading
and profit and loss account. All
permanent accounts appears in the
balance sheet.
THANK YOU
……………

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