LEDGER
,Contents #
Classification of Journal = Ledger
It is principal book of Accounting
It is prepared to know the closing balance of Expense, Income,
Liability, Asset.
It explain the :-
i. Total expense
ii. Total income
iii. Total Purchase
iv. Total sales
v. Total cash receipt
vi. Total cash payment
vii. Receivable (How much money have to recover from customer)
viii.Payable (How much money have to pay to supplier)
, Meaning of Ledger
As we know, all transactions are first entered in the journal. The
transactions relating to a particular person, asset, expense or income
are recorded at different places in the journal as they occur on different
dates. Hence, Journal fails to bring the similar transactions together at
one place. It is, therefore, unable to supply any information about the
business such as how much money the business owe to others and how
such money others owe to it, how much capital invested in the
business, how much goods bought or sold etc. To get these information,
classifying of the recorded transactions in journal is done in the ledger.
, Features of Ledger
1. Ledger is a master record of all the accounts of the
business.
2. It is prepared from Journal.
3. Ledger Accounts show the current balance in all accounts.
4. Trial Balance and Final Accounts are prepared from Ledger
Accounts.
5. Ledger Accounts summarise the effect of transactions upon
assets, liabilities, capital, incomes and expenditures.
,Contents #
Classification of Journal = Ledger
It is principal book of Accounting
It is prepared to know the closing balance of Expense, Income,
Liability, Asset.
It explain the :-
i. Total expense
ii. Total income
iii. Total Purchase
iv. Total sales
v. Total cash receipt
vi. Total cash payment
vii. Receivable (How much money have to recover from customer)
viii.Payable (How much money have to pay to supplier)
, Meaning of Ledger
As we know, all transactions are first entered in the journal. The
transactions relating to a particular person, asset, expense or income
are recorded at different places in the journal as they occur on different
dates. Hence, Journal fails to bring the similar transactions together at
one place. It is, therefore, unable to supply any information about the
business such as how much money the business owe to others and how
such money others owe to it, how much capital invested in the
business, how much goods bought or sold etc. To get these information,
classifying of the recorded transactions in journal is done in the ledger.
, Features of Ledger
1. Ledger is a master record of all the accounts of the
business.
2. It is prepared from Journal.
3. Ledger Accounts show the current balance in all accounts.
4. Trial Balance and Final Accounts are prepared from Ledger
Accounts.
5. Ledger Accounts summarise the effect of transactions upon
assets, liabilities, capital, incomes and expenditures.
