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What is the Ledger and How to prepar the ledger account


what is the Ledger?

The ledger is like a book that records journal accounts and previous years' closing balance entry and Those posts will be based on its title and it is through this information that the closing balances for the financial year will be calculated.

Why prepare a Ledger?

for convenience, facility, time save, easy access etc...

Let me give you an example Now suppose you buy a new house You have brought all the necessary items for that house in a truck All the items in that vehicle are yours but every item is placed in every place of that house for example clothes in the bedroom, furniture in every place according to your need, why all of your items are kept taken separately, the answer is Convenience. Similarly, there will be almost over a hundred transactions in the company in which every transaction is recorded in each account because of the Convenience.

Let me give another example. Does the company's management department want to know about the purchase details in the company? Now the accountants have to send those details to the management department.

Perhaps if the accounting department does not maintain the purchase book it will have to search for hundreds of transactions and collect the purchase details so that the company can easily send the purchase details to the management department if the purchase account is maintained.

how to prepar the ledger account?

If you understand how this one transaction is recorded from the journal account to the ledger you can easily record most of the transactions in the journal account in the ledger.

Almas sells goods worth Rs 180 to Nemiex and receives Rs 100 from him for this,

Date Particular  Debit  Credit
   Cash A/C    D 100 -
   Nemiex A/C    D 80 -
      To sales A/C    C - 180

Cash A/C
Debit-    Crdit
Date particular Amount Date particular Amount
To Sales 100 By Blanace C/D 100
100 100
To Blanace B/D 100

Nemiex A/C
Debit-    Crdit
Date particular Amount Date particular Amount
To Sales 80 By Blanace C/D 80
80 80
To Blanace B/D 80

Sales A/C
Debit-    Crdit
Date particular Amount Date particular Amount
To Blanace C/D 180 By Cash 100
- By Rajsing 80
180 180
by Blanace B/D 180

Date Particular   Debit   Credit
   Cash     100 -
  Debitors     80 -
  Sales     - 180

""ledger important ""the transection note and journal preparation in the year completeding it is requirement with that year but the ledger is the primary document on next year.

See the example to know more about the ledger:  try now and If you are in doubt about any transaction, please enter the comments below.


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