ledger ppt (1).pdf/ Format / introduction

accounts balance sheet

1. LEDGER

2. LEDGER
Ledgerisaprincipalbookwhichcontainsallthe
accounts(assets,liabilities,capital,revenue,expenses,
losses,gains)towhichthetransactionsrecordedinthe
journalorsub-journalsaretransferred(posted).
DEFINITION:-
“Thebookinwhichalltransactionsofa
traderarerecordedinclassifiedandpermanent
formiscalledledger”. L.C.Cropper

3. Format or Ruling of ledger
Inledgerwemaintainaccounts.Eachaccountis
allocatedoneormorepagesdependingupon
therequirements.Ledgerisusuallyruledinany
oneofthefollowingtwoalternatives.
dparticularFolio Debit Credit Debit
or
Credit
Balance

4. Procedure of posting (in brief)
An account which has been debited
-with the help of an index ,open the page on which the concerned account appears.
-Enter the date of the transaction ,in the ‘date column’ on the debit side.
-Record the name of the account credited in the journal ,in the ‘particulars column’
on the debit side as “To…(name of the account credited)…’’
-Record the page number of the journal in the ‘Folio column’ on the debit side and
in the journal ,write the page number of the ledger on which a particular account
appears in the ‘ Ledger Folio column’.
-Enter the relevant amount in the ‘ Amount column ‘ on the debit side .

5. An account which has been credited
-With the help of an index , open that page on which the concerned account appears.
-Enter the date of the transaction , in the ‘date column’ on the credit side .
-Record the name of the account debited in the journal in the ‘particulars column’ on
the credit side as ‘By …(name of the account debited)…’’
-Record the page number of the journal in the ‘Folio column ‘ on the credit side and in
the journal , write the page number of the ledger on which a particular account appears
In the ‘Ledger Folio column’.
-Enter the relevant amount in the ‘Amount Column ‘ on the credit side .

6. Relationshipbetweenjournalandledger
Both journal and ledger are the most important books used under double entry
system of book-keeping .Their relationship can be expressed as follows:-
1:The transactions are recorded all in the journal and then they are posted to the
ledger. Thus, the journal is book of first or original entry ,while the ledger is the book
of second entry .
2: Journal records transactions in a chronological orders ,while the ledger record
transactions in an analytical order.
3: Journal is more reliable as compared to the ledger since it is the book in which the
entry is passed first
of all.
4: The process of recording transactions is termed as “journalising”Whilethe
process of recording transactions in the ledger is called “posting”.
5: Journal is prepared on the basis of vouchers , invoices bill etc. Whereas ledger is
prepared from journal .

7. 6: journal does not supply complete information of an account whereas ledger
discloses the detailed information about every account .
7:A brief description is given, for each entry in journal whereas no description of entry
is done in the ledger .
8:Journal have two separate columns, ledger contains two separate sides.

8. THANKYOU
Presented by: sukhpreetkaur