Format of Ledger

Ledger is a T-format account where the debit is depicted on the left side, and the credit is depicted on the right side. The columns include date, particulars, journal folio (JF), and amount.

Debit: The debit side of an account represents when the debit increases.

Credit: The credit side of an account represents when the credit increases.

Date: The date on which the transaction takes place.

Particulars: The contra entry of the concerned account according to the double entry system is shown under this head.

Journal Folio: The reference number of the journal entry from the journal.

Amount: It is the amount debited or credited to a particular amount during the transaction. 

 

Ledger | Meaning, Format, Example and Balancing of Accounts

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What is Ledger?

A Ledger records transactions from the journal and forms separate accounts for them in chronological order. A Ledger is a date-wise record of all the transactions related to a particular account. Ledgers are crucial sources of financial records. A ledger is formed after the journal and is the secondary step of bookkeeping. After the preparation of the journal, there comes the classification of journal entries into separate accounts and posting them in the ledger like a cash account, salary account, payable accounts, etc., in chronological order....

Format of Ledger

Ledger is a T-format account where the debit is depicted on the left side, and the credit is depicted on the right side. The columns include date, particulars, journal folio (JF), and amount....

Example of Ledger Accounts

Let us assume ABC Ltd. records the following transactions for the year ending on March 31, 2023:...

Balancing of Accounts

1. The debit and credit columns of every ledger account are compared when all the journal entries are posted in the ledger accounts. The difference between the total of debit and credit side is ascertained. The difference is to be placed in the amount column of the side having a lesser total....

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