Ledger is a register with pages numbered consecutively. Each account is allotted one or more pages in the Ledger.
If one page is completed, the account will be continued in the next page. An index of various accounts opened in the Ledger is given at the beginning of the Ledger for the purpose of easy reference.
A general ledger is a complete record of financial transactions that holds account information needed to prepare financial statements, and includes accounts for assets, liabilities, owners’ equity, revenues and expenses.
What is meant by Posting?
Transactions recorded in the Journal and Subsidiary journal are transferred to the concerned accounts in the Ledger in a summarized and classified form. This process is called posting.
“Interesting Statistics on Accounting
The first book on double-entry accounting was written in 1494 by Italian mathematician and Franciscan friar Luca Bartolomeo de Pacioli.
Although double-entry bookkeeping had been around for centuries, Pacioli’s 27-page treatise on the subject has earned him the title “The Father of Modern Accounting.
Accounting plays a major role in law enforcement. The FBI counts more than 1,400 accountants among its special agents.
The state of New York gave its first certified public accountant (CPA) exam in 1896.
Rules for posting:
Advantages of keeping a Ledger:
What is a Ledger account? Give a Proforma of a Ledger account.
A Ledger account is nothing but a summary statement of all transactions relating to a person, asset, expense or income, which have taken place during a given period of time showing their net effect.
Proforma of a Ledger account:
Date Particulars J.F Amount Date Particulars J.F Amount
Year To (the name Rs. P Year By (the name Rs. P
Month of credit Month of the debit
Date element) Date element)
What are the methods of balancing the Ledger account?
At the end of the each month or year or any specific day it is essential to determine the balance in an account. To do that, add the totals of both sides (Debit and credit sides) and find out the difference in both the sides.
The difference in both the sides is ‘Balance’. If the Debit is greater than the credit side, it is a Debit balance or vice-versa.
There are two methods: