The initial step within the process of recording transactions would be to journalize and also the next step would be to publish the transactions within the ledger. Ledger is called the ‘principal or chief’ book of accounts. In ledger the financial details are indexed by its nature and relevance.
The statement which records the transactions at one place relating to particular subject is called account. It containing all of the accounts is called ledger and also the process of writing in the accounts is called posting.
The ledger is an essential book of account and it is the destination from the records produced in the Journal or Sub-divided Journals. It’s a collection of all of the three kinds of accounts –Personal, Real and Nominal. If you’re confronted with questions like:
– Just how much a specific customer owes you?
– What’s the amount payable on your part to anybody of the suppliers?
– What’s the quantity of goods purchased on your part during specific period ?
– Just how much sales you’ve affected during, say, last three several weeks?
– What’s been your expenditure on, say, labor throughout the period?
Then your faster and simpler method of ascertaining the appropriate details are to go to your ledger, understand the balance from the Customer’s A/c or Supplier’s A/c or Purchases A/c or Sales A/c or Wages A/c.
In ledger we maintain accounts. Each account is allotted a number of pages based upon the necessity. Ledger is generally ruled in anybody from the following two alternatives. First alternative is adopted in individuals cases when balance is needed to become determined after every transaction e.g. Banks.
Second alternative is adopted in individuals cases when balance is needed to become determined only periodically, say following a month or quarterly. Inside your study of book-keeping and accountancy T- shape accounts is going to be used (alternative-two).
The transactions are joined within the ledger accounts so as of dates. Every entry should be dated which should be proven within the column intended for date. This is actually the first column around the left of every side from the account.
Record the appropriate amount around the left-hands side from the account which, based on the journal will be debited and record the quantity around the right-hands side from the account which, according to journal, will be credited (use ‘amount columns’ for this function). In ledger account each entry around the debit (left-hands) side commences using the word “To” and something the loan (right- hands) affiliate with the term “By”. Within the ‘particulars column’ reference is built to another account involved for supplying mix reference. Within the ‘folio column’ could be joined the page from the journal (or page from the relevant sub-divided journal) that entry continues to be published as well as in the folio column of journal, the page quantity of the ledger is presented which the appropriate account seems.
Following a above process of recording the records within the ledger would really add up to this The account finding the benefit fit of money or goods will get the debits and also the account imparting i.e. offering the advantage will get the credits.