This is the principal book in which accounts are kept. These accounts are usually referred to as ledger accounts. They are so called because each occupies a specific page a number of pages or a section of a page in the ledger.
Note: A balance Sheet, on the other hand is not a ledger account. But a statement of assets and liabilities at a point in time compiled from the list of balances taken from the ledger.
To make references to account easy, the ledger pages are usually numbered consecutively, each page is called a ‘folio’ and the number on it a ‘folio number’
The following is a specimen of a simple ledger.
Features of the Ledger
- Folio Column: This column indicates the folio (or page) in which the other half of the double entry has been recorded.
- Date Column: This is for entering the year, month and date on which the transaction occurs.
iii. Particulars Column: The nature of the transaction is entered in this column. Usually, it is the name of the account in which the other half the double entry is made. The account is easily identified by folio number.
- Amount Column: The amount of the transaction is entered in this column.
Note: Debit entries are made on the left side of the page while credit entries are made on the right side. The debit side is distinguished from the credit side by the letters Dr and Cr respectively.
BOOK-KEEPING 2ND TERM SCHEME OF WORK
CLASSIFICATION OF LEDGER ACCOUNTS
- classes of ledger
- classes of ledger accounts
- classes of ledger with examples
- major classes of ledger
- three classes of ledger accounts
- major classes of ledger with examples
- 3 classes of ledger
- two classes of ledger
- state classes of ledger
- four classes of ledger