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The Simple Ledger
Ledger Accounts
• More definitions guys!
• Any time we list the cash we have in the bank, money owed to us, money we owe to people, a mortgage, or anything…we call these accounts.
Ledger Accounts
• A Ledger is the name for a group or file of accounts.
• Accounts can be prepared several different ways. They can be on paper, in a binder, on cards, or electronic. This is obviously the most popular nowadays
Ledger Accounts
• A T-Account is a simple way of looking at accounts from the balance sheet.
• It looks like this. Cash
Ledger Accounts
• Let’s look at the board.
Important Features of Ledger Accounts
• Every item on the balance sheet is given its own T-Account. Start calling the entry items “cash account,” “B. Chen account,” etc.
• If a dollar sign is used, it is put on the first line only. This is the “beginning value.”
• The value is placed on whatever side of the “T” that you would put the value in the equation.Assets= Liabilities + Owner’s Equity
Important Features of the Ledger Account
Let’s review some things.
• What is an account?
• What is a ledger?
• How can ledgers be kept?
• Knowing what you now know…why do we sometimes call a company’s financial records, “the books?”
Exercise 1 – Steven’s Woodworking
Exercise 2 – Dr. Pauline Inaba
Exercise 3 – Lily Wall
• What is her:-Capital?
• What is the equationlike?
Homework (for tomorrow)
• Exercise #4 on page 92.