Here we detail about the steps for posting of transactions from different subsidiary books to ledger accounts. Posting from Cash Book to Ledger Accounts: On the receipts side of cash book, all receipts through cash and bank are recorded. Similarly, on the payments side of cash book, all payments through cash and bank are recorded. We have already discussed that [...]
Here we detail about the nine steps for balancing of accounts in ledger. Balancing of an account is to total both debit and credit sides of an account and putting the difference on that side which is shorter. All ledger accounts are usually closed and balanced at the end of an accounting period. The main reason for balancing is to [...]
Let us make in-depth study of the meaning, utility, format and classification of ledger. Meaning of Ledger: A book containing all accounts of a business enterprise is known as ledger and transferring transactions from the books of original entries to their respective ledger accounts is known as posting. Ledger serves as the main book for an effective and result oriented [...]