Ledger

• A Ledger is a summary of a
specific account for a certain
period to know the financial
position of that account.
 Ledger Accounts
• Ledger accounts of all assets and
expenses show debit balance.
• Ledger accounts of all liabilities
and incomes show credit balance.
 Ledger Account
• A separate account is opened in ledger for
each account .
• All debit and credit transactions are entered.
• At the end, the accounts are properly
balanced .
• The balance is brought forward to the next
accounting period.
 Ledger Posting
• Posting journal entries means transferring
the effect of transactions from journal to
ledger.
• Any financial transaction is first recorded in
the form of journal entry.
• The respective effect of the transaction on
specific accounting head is then transferred
from journal to ledger.
 Steps in Ledger Posting
• The amount to be debited is posted as
follows:
• Enter date of transaction on debit side of the
relevant account.
• Record amount on the debit side.
• For recording of account to be credited,
recording is done on the credit side of the
account.
 Registers / Subsidiary Books
• For similar transactions after writing
journal entry, instead of posting it to
the ledger , we can record all these
transactions in one separate register
called as Subsidiary book to
minimise the mechanical work.
 Subsidiary Books
• Sales Book- All credit sale transactions
are recorded.
• Purchase Book- All credit purchase
transactions are recorded.
• Cash Book- All cash transactions are
recorded.
 Format of Ledger
Dr. Cr.

Date Partic J.F. Amt. Date Partic J.F. Amt.

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