Ledger making volume ii

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LEDGER MAKING

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After making journals of transactions for the period, another device which shows the end result of account is required and the group of accounts is known as ledger which is also known as “ The Book of Final Entry”.

All journals show increase or decrease in all nature of accounts not in particular account but the ledger account is a particular account showing increase and decrease during the period with final balance.

The ledger is maintained in different ways as in bounded register and in loose leaf already designed in manual accounting system as contains below;

The ledger page contains page number; in which the transactions are recorded or a page is allocated for an account, that page number is called the account number of that account. There are two sides in standard ledger form; each side contains four columns (1) Date (2) Description (3) Reference (4) Debit/Credit.

Date: in this column, year, month and date is written as in general journal.

Description: in this column, the head of account of opposite account is written for example the ledger account Capital which affected with opposite account cash; cash is written in Capital account and capital in cash account.

Reference: The account number/ledger folio/page number of the opposite account is written in reference column.

Debit/Credit: The amount of the account is recorded; debit in debit column and credit in credit column.

There are three forms account as specified below:

1- Standard Form2- Skeleton form “T” Account3- Self balancing form

<THE SYSTEM OF ACCOUNTING < VOLIUM II< SYED AQEEL RAZA<[email protected]>

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1- STANDARD FORM LEDGER

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Head of Account CASH Date Description Ref: Debit Date Description Ref: Credit2015 2015

Jan' 1 2 3 4 5

c/f _/ Feb' 1 b/f _/

2 3 4 5

c/f _/ Mar' 1 b/f _/


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2- Skeleton form “T” Account

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Skeleton or “T” form ledger is derived from Standard form ledger. The columns have been removed and the positing is recorded keeping in mind the Standard Form ledger.

Cash Acc: No.

3- Self balancing form

Self balancing ledger form contains date, description, reference, debit, credit and balance is suitable for all accounts especially for account payable and receivable. It shows the latest balance of debit or credit at a glance. Banks also use this form of ledger.


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GENERAL LEDGERCOMPANY NAME LEDGERAccount of

DEBIT CREDIT Dr./ BALANCEDATE PARTICULARS FOLIO Rs. Rs. Cr. Rs.

Self balancing form


LEDGER MAKING

There may be some kind of ledger books according to business requirements but here are following ledger books mostly used as described;

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General ledger

Subsidiary Ledger

Accounts Payable Accounts receivable

Expense & Revenue Ledger

General Ledger

A general ledger may contain all accounts for recording business transactions relating to assets, liabilities, owner’s equity, revenue and expenses under double entry accounting system.

In order to control huge business information, general ledger may be divided for permanent accounts or balance sheet accounts; assets, liabilities and owner’s equity named general ledger and temporary accounts or income statement accounts; revenue and expense named expense and revenue ledger under control account as sequence;


LEDGER MAKING

Balance Sheet Accounts

ASSETS EQUITIES

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CURRENT ASSETS LIABILITIESBank CURRENT LIABILITIESCash Accounts payablePetty Cash Funds Salaries/wages payableAccounts receivable Bank LoanMerchandise Inventory Unearned RevenuePrepaid ExpenseInvestments short term

Contra Current Assets

Allowance for uncollectible

Non-current Liabilities

Mortgage payableLong term loan

NON-CURRENT ASSETSLandBuilding OWNER'S EQUITYEquipment Owner's capitalFurniture & Fixtures Owner's drawingsOther AssetsInvestments long term

Contra Non-current AssetsAccumulated depreciation-Asset

Income Statement Accounts

Revenues:Sales/Fees/Commission/Rent Income/Interest


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Direct ExpensesCartage

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Wages/LaborCustom Duty

Selling ExpensesAdvertising ExpensesSales Promotion ExpensesSales Distribution Expenses

Financial ExpensesBank CommissionBank Charges

Administrative ExpensesSalaries Utility Expenses Stationery Entertainment ConveyancePostage Charity Furniture Repair Janitorial Telephone ChargesBad Debt Expenses - Depreciation ExpensesPurchasesPurchase ReturnPurchase Discount


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Illustration 1

PAGE NO. 1

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GENERAL JOURNALDATE DESCRIPTION REF. DEBIT CREDIT

2015

Jan 1 Cash A/cCR1/ 100,000

Capital A/c (Rizwan)CR1/ 100,000

(Cash invested by Rizwan) 5 Shop Deposit A/c CP1/ 6,000 Prepaid Rent A/c CP1/ 2,000 Cash A/c CP1/ 8,000 (3 month shop rent as deposit & 1 month rent in advance) 6 Purchases A/c CP2/ 60,000 Cash A/c CP2/ 60,000 (Merchandise purchased in cash) 7 Furniture A/c CP3 5,000 Cash A/c CP3 5,000 (Purchased furniture for shop)

10 Purchases A/c JV1 25,000

A/c Payable (Imran Trading) JV1 25,000

(Merchandise purchased on credit from Imran Trading)

C/O 198,000 198,000


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Page No.2

GENERAL JOURNALPage # 2

DATE DESCRIPTION REF. DEBIT CREDIT 2015

C/O 198,00

0 198,00

0

11 Cartage A/c CP4/ 2,00

0

Cash A/c CP4/ 2,00

0 (paid cartage for merchandise)

15 Cash A/c CR2/ 50,00

0

Sale CR2/ 50,00

0 (Merchandise sold in cash)

18 A/c Receivable (A.A. Enterprises) JV2/ 30,00

0

Sales A/c JV2/ 30,00

0 (Sold merchandise on credit to A.A. Ent.)

20 Bank A/c CP5/ 10,00

0

Cash A/c CP5/ 10,00

0 (Cash deposited into Bank)

Jan: 22 Utilities Expense CP6/ 1,50

0

Cash CP6/ 1,50

0 (paid electricity bill)

C/O 291,50

0 291,50

0


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PAGE NO. 3

GENERAL JOURNALDATE DESCRIPTION REF. DEBIT CREDIT

2015 C/O 291,500 291,500 Jan: 22 A/c Payable (Imran Trading) JV3/ 1,000

Purchase Return A/c JV3/ 1,00

0 (goods returned to Imran Stores) Jan: 23 A/c Payable (Imran Trading ) CP7/ 23,520 Cash A/c CP7/ 23,520

(Cash paid to Imran Trading against purchases)

A/c Payable (Imran Trading Co.) JV4/ 480

Purchase Discount JV4/ 480 (To record Purchase discount) Jan: 24 Cash A/c CR3/ 28,500 A/c Receivable (A.A. Enterprises) CR3/ 28,500 (Cash received from A.A. Enterprises)

Sales Discount JV5/ 500

A/c Receivable (A.A. Enterprises) JV5/ 500 (To record sales discount) 30 Salaries Expense A/c BP1/ 5,000

Bank A/c BP1/ 5,000

(paid for salary to sale man at shop) Jan: 31 Sales Return A/c JV6/ 1,000

A/c Receivable (A.A. Enterprises) JV6/ 1,000

(Unsold goods returned from A.A. Enterprises)

TOTAL 353,480 353,480 <THE SYSTEM OF ACCOUNTING < VOLIUM II< SYED AQEEL RAZA<[email protected]>

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Illustration 1.1

PAGE NO. 4

GENERAL JOURNAL

DATE DESCRIPTION REF. DEBIT CREDIT 2015Feb: 01 Petty Cash Fund Bp3 2,000.- Bank BP3 2,000.- (Cash for petty cash expenses)

Illustration 1.2


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RIZWAN TRADERS

JOURNAL VOUCHER

JV.No. JV-7 DATED : 28/2/2015 S.NO. HEAD OF ACCOUNTS FOLIO DR. (Rs.) CR. (Rs.)

1 Stationery A/c 550 2 Entertainment A/c 150 3 Conveyance A/c 200 4 Postage A/c 50 5 Charity A/c 20 6 Furniture Repair A/c 300 7 Janitorial A/c 200 8 Telephone Charges A/c 50 9 Advance to Staff 400 Petty Cash Funds 1,920

TOTAL NARRATION: TO RECORD PETTY CASH EXPENSES.

Signed Signed Signed Signed

Prepared by: Checked by: Authorized by: Received By:


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The entries from general journal or from journal voucher will be posted in ledger column as in general journal date in date column, opposite account in particular column, debit in debit column and credit in credit column of the ledger following reference number as shown below;


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Illustration 1-1.2 (RIZWAN TRADERS)

In self balancing form, the balance of the ledger automatically will come by adding the amount debit with debit and credit with credit and reducing debit from credit and credit from debit with each transaction.


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SUBSIDIARY LEDGER

Subsidiary ledger contains on detailed information is a sub ledger or book of general ledger designed for recording of specific types of business transactions where the volumes of transactions are usually high which links with general ledger under control account. There is no need of creating subsidiary ledger in small concern.

The subsidiary of an account can make which has various accounts or parties and things like parties in sale and purchase, things in assets and materials, etc.

The subsidiary ledger has same contains like ledger but difference is to separate specific account involves various parties or things links with the specific account.

The subsidiary ledger is periodically summarized and posted to an account in the specified general ledger control account.

The following subsidiary ledgers may usually require for controlling huge business information;

o Accounts payableo Accounts receivableo Purchase Ledgero Sale Ledger

ACCOUNTS PAYABLE SUBSIDIARY LEDGER

Accounts payable refers to creditors who deliver goods for business and get payment after sometime. The amount of invoice is journalized as inventory account debit and party’s account credit in ledger account directly or through purchase journal. The purchases in business may be from different persons or firm may require the separate book of accounts like subsidiary ledger which provide detailed information of each person or firm to accountant. It is controlled in general ledger by Account payable control account.


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Purchase journal, purchase return and allowances journal, cash payment journal and journal voucher are the source of transferring data to account payable subsidiary ledger accounts.

Illustration 1.3

RIZWAN TRADINGPURCHSASE JOURNAL

Page No. 01DATE

NOVICE NO. NAME OF SUPPLIERPOST

AMOUNT2015 Ref.

Mar’01 305 Bilal Store _/ 8,000Mar’10 1005 Asim Traders _/ 15,000Mar’15 203 Khan & Co. _/ 12,500 Mar’20 400 Imran Traders _/ 5,000 Mar’28 506 Sumair Enterprises _/ 2,500 TOTAL 43,000

Purchases 11205 43,000 Accounts Payable 22101


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The details of credit transactions as to date of purchase, Invoice number, name of supplier and amount payable to supplier are recorded in purchase journal daily or date wise without debit or credit.

The total amount of purchase journal at the end of the month or on accounting period payable to suppliers is recorded in General Ledger as purchases (Inventory) debit and account payable control account credit as shown below;


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The detail of accounts payable 22101 of each party subsidized by March 31,2015 is made as below;

The details of account payable 22101 of each party subsidized by March 31, 2015 are recorded through purchase journal on daily basis or as soon as transaction occurred date wise and a tick as post reference marked in purchase journal as a sign of recording in subsidiary ledger of particular account as;


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Illustration 1-1.3

In case of goods return to suppliers, general ledger control account will be affect by the total of purchase return and allowance journal account payable debit and purchase return & allowances credit under purchase Return and Allowances journal.

Illustration 1.4

PURCHASE RETURNS AND ALLOWANCES JOURNALRIZWAN TRADERS Page No. 01

DATE CREDIT MEMO NO. NAME OF SUPPLIER

POSTAMOUNT

2015 Ref.

Mar’20 1023 Khan & Co. _/ 500 Mar’25 203 Imran Traders _/ 200 Mar’30 1036 Sumair Enterprises _/ 100 TOTAL 800

Account Payable 22101 800 Purchase Return & Allowances 11108


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In connection purchase return and allowances, the subsidiary ledger of creditors/parties will be affected by the individual amount of party through purchase return and allowances journal.

The post reference column of purchase return and allowances journal is marked by ticking _/ as a sign of positing against each party in subsidiary ledger.


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The Subsidiary ledger of creditors following general ledger may also be affected by adjustment through journal voucher, in case of any such transaction that does not belong to purchase journal, purchase return and allowances journal, cash payment journal.

The another step of subsidiary ledger is to reconcile it with general ledger control account making schedule of account payable’s subsidiary accounts consist on balances of the period. The total amount of parties in subsidiary ledger and in control account of accounts payable in general ledger must be equal with each other like;


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The account payable schedule one side works as a trial balance of creditors and on other side is shown in financial statement under note.

RIZWAN TRADERS

The accounts mostly used are shown but many other accounts according to business nature means manufacturing, services and trading may be formed in order.


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ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER

Account receivable account in general ledger indicates that the amount is receivable from the party to whom the goods was sold on credit that party is called debtor and the gathering of parties comes under debtor accounts which in order words are accounts receivable.

For making subsidiary ledger of accounts receivable or debtor accounts, we have to maintain journals like sales journal, sales return and allowances journal, cash receipt journal and adjustments through journal vouchers of those transactions that do not belong to journals or come after positing of entries from journals.

Illustration 1.5 Rizwan Traders

SALES JOURNALPage No.01

DATE ACCOUNT DEBITED INVOICE NO.

POSTAMOUNT

2015 Ref.

Apr’01 Umair Electric 2255 _/ 16,000 Apri’08 Ali Imran & Co. 506 _/ 16,000 Apr’15 Murad Electronic 5206 _/ 15,000 Apr’20 Talpur & Co. 1005 _/ 10,000 Apr’30 Moon Electronic 605 _/ 5,000 TOTAL 62,000

Account Receivable 11203 62,000 Sales 40002


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The details of debit transactions in terms of receivable as to date of sale, account debited by name of customer, Invoice number, tick mark as a post reference and amount receivable from customer are recorded in sales journal daily or date wise.

The total amount of sales journal at the end of the month or on accounting period receivable from customer is recorded in General Ledger as account receivable debit and sales credit as shown below;

Illustration 1.6 Rizwan Traders

SALES RETURNS AND ALLOWANCES JOURNALPage No. 01

DATE ACCOUNT CREDITED

CREDIT POSTAMOUNT

2015 MEMO Ref.

Apr’10 Ali Imran & Co. 2 _/ 1,600 Apr”20 Murad Electronics 3 _/ 600 TOTAL 2,200

Sales Return & Allowances 41001 2,200 Accounts Receivable 11203


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In case of goods return to customer, general ledger control account will be affect by the total of sales return and allowance journal account receivable credit and sales return & allowances debit under sales return and allowances journal.

In connection with sales return and allowances, the subsidiary ledger of debtors/customers will be affected by the individual amount of party through sales return and allowances journal.

The post reference column of sales return and allowances journal is marked by ticking _/ as a sign of posting against each party in subsidiary ledger.


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The another step of subsidiary ledger is to reconcile it with general ledger control account making schedule of account receivable subsidiary accounts consist on balances of the period. The total amount of parties in subsidiary ledger and in control account of accounts payable in general ledger must be equal with each other like;

The account receivable schedule one side works as a trial balance of debtors and on other side is shown in financial statement under note.


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RIZWAN TRADERS


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Illustration 3

From the following selected purchase journal, purchase return and allowances journal and cash payment journal of M/s. Iqbal Traders require accounts payable subsidiary ledger under control accounts under “T” Form.

PURCHSASE JOURNAL

IQBAL TRADERS P1

DATE NOVICE NO. NAME OF SUPPLIER

POSTAMOUNT

2015 Ref.

Jul 1 320 Aslam Bothers _/ 10,000

5 430 Half Moon Enterprises _/ 5,000

6 1002 General Traders _/ 6,000

7 502 Ismail Brothers _/ 15,000

10 600 A.R. Traders _/ 20,000

20 10020 Shakir Traders _/ 10,000

25 800 Akram Electronics _/ 5,000

30 108 Azad Store _/ 20,000

TOTAL 91,000

Purchases (Inventory) 91,000

Accounts Payable 91,000


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Illustration 3.1

PURCHASE RETURN AND ALLOWANCES JOURNAL

IQBAL TRADERS Page No. 1

DATE CREDIT MEMO NO. NAME OF SUPPLIER

POSTAMOUNT

2015 Ref.

Jul 10 3005 Aslam Brothers _/ 1,000

12 2501 Half Moon Enterprises _/ 500

15 1102 General Traders _/ 300

20 300 A.R. Traders _/ 500

2,300

Accounts payable (22101) 2300

Purchase Return & Allowances (1108) 2300


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Illustration 3.2

The payment to creditors or supplier is made through cash payment journal which affects to general ledger control account and subsidiary ledger of each party like other journals as;

Account payable 38,200Purchase Discount 200Cash 15,000Bank 23,000


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ACOUNTS PAYABLE SCHEDULE

Accounts Payable (22101)30/7 PRJ1 2,300 30/7 PJ1 91,00031/8 CPJ1 38,200 32/8 c/f 50,500

IQBAL TRADERSSCHDULE OF ACCOUNTS PAYABLE

Aslam Brothers 4,000 Half Moon Enterprises 1,800 General Traders 2,700 Ismail Brothers 7,500 A.R. Traders 14,500 Shakir Traders 7,500 Akram Electronics 2,500 Azad Store 10,000

TOTAL 50,500


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Illustration 3.3 (Iqbal Traders)

SALES JOURNALPage No.01

DATE ACCOUNT DEBITED INVOICE NO.

POSTAMOUNT

2015 Ref.

Jul’01 Hakim & Co. 005 _/ 15,000.-

2 Rahim & Karim Traders 006 _/ 5,000.-

6 Mushtaq & Co. 007 _/ 15,000.-

10 Khan Khan Traders 008 _/ 10,000.-

15 Ashraf Brothers 009 _/ 10,000.-

20 Imran Sons 010 _/ 5,000.-

25 Kamran & Brothers 011 _/ 6,000.-

30 Nadeem & Co. 012 _/ 10,000.-

TOTAL 76,000

Account Receivable 11203 76,000

Sales 40002 76,000


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SALES RETURNS AND ALLOWANCES JOURNALPage No. 01

DATE ACCOUNT CREDITED

CREDIT POSTAMOUNT

2015 MEMO Ref.

Jul’5 Hakim & Co. 101 _/ 500.-

6 Rahim& Karim Traders 102 _/ 500.-

12 Khan Khan Traders 103 _/ 500.-

20 Ashraf Brothers 104 _/ 1,000.-

30 Kamran Brothers 105 _/ 200.-

30 Nadeem & Co. 106 _/ 500.-

TOTAL 3,200.-

Sales Return & Allowances 41001 3,200.- Accounts Receivable 11203 3,200.-


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The receipts from debtor or customer are made through cash receipt journal which affects to general ledger control account and subsidiary ledger of each party like other journals as;

Aug 1, 2015, Cash receipt from Hakim & Co. Rs.5000/=.Aug 2, 2015 Cheque Rs.2500/= received from Rahim & Karim Traders and given discount Rs.200/=.Aug 6, 2015, Cheque received from Mushtaq & Co Rs.5000/=.Aug 10, 2015, Cash received from Khan Khan Traders Rs.3000/=.Aug 15, 2015, Cheque received from Ashraf Brothers Rs.5000/=. Aug 20, 2015, Cash received from Imran Sons Rs. 2000/=.Aug 25, 2015, Pay Order received from Kamran & Bros. Rs.3000/=.Aug 30, 2015, Cash received from Nadeem & Co. Rs.5000/=.

Cash 15,000Bank 15,500Sales Discount 200

Accounts Receivable 30,700


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Accounts Receivable (11203)30/7 SJ1 76,000

30/7 SRJ1 3,200

30/8 CRJ1 30,700

30/8 c/f 42,100


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Expense and Revenue Ledger

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Expense and revenue ledger consists on income statement accounts may be created to view the position of changing revenue under control account in general ledger as Revenue Control A/c or Expense and revenue accounts as well as to concise general ledger.

On making income statement accounts at the end of the year, the balances in expense and revenue ledger will move as revenue control account debit and expense and revenue accounts credit and balance in revenue control account will be income or loss matching with revenue control account in general ledger. The contra balance in revenue control account of expense and revenue ledger will be transferred to revenue control account in general ledger.

If, we are maintaining general ledger only, the balances of revenue and expenses will contra at the end of the period by creating expense and revenue summary account.

Expense and revenue accounts or Income Statement Accounts are temporary accounts link to general ledger under revenue control account showing the actual position of profit and loss.

The ledger of expense and revenue may be formed under alphabetically order or account following after account as mentioned below;


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Illustration 1-1.6

GENERAL LEDGERRIZWAN TRADERS LEDGERAccount of REVENUE CONTROL ACCOUNT

DATE PARTICULARS FOLIO DEBIT CREDITDr. / BALANCE

2015 Rs. Rs. Cr. Rs.

Jan 6 To purchases cp1/1 60,00

0 Dr. 60,000

Jan 10 To purchases jv1/1 25,00

0 Dr. 85,000

Jan 11 To Cartage cp4/2 2,00

0 Dr. 87,000

Jan 15 BY Sale cr2/2 50,00

0 Dr. 37,000

Jan 22 By Purchase Return jv3/3 1,00

0 Dr. 36,000

Jan 22 Utility Exp cp6/2 1,50

0 Dr. 37,500

Jan 24 Sales Discount jv5/3 500 Dr. 38,000

Jan 30 To Salaries bp1/4 5,00

0 Dr. 43,000

Jan 18 By Sale jv2/2 30,00

0 Dr. 13,000

Jan 31 To Sales Return jv6/3 1,00

0 Dr. 14,000

Feb 28 To petty cash pc1 1,52

0 Dr. 15,520

July 23 By Purchase Discount jv4/4 480 Dr. 15,040 Mar 31 To Purchase Journal pj1

43,000 Dr. 58,040

Mar 31 By Purchase Return prj1 800 Dr. 57,240

Apr 30 By Sales Journal sj1 62,00

0 Cr. (4,760

)

Apr 30 To Sales Return sjr1 2,20

0 Cr. (2,560

)

Self balancing form of ledger

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The credit balance in revenue control account will show that revenue is above than expenses and debit below than expenses.


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LEDGER MAKING

The subsidiary ledgers may also be created in following conditions;

Trade Creditors

Trade creditors are who, who supply goods or services other than expenses for business referred to accounts payable.

Purchase Ledger

Subsidiary ledger for purchase is required where, where the variety of items purchased for selling are involved. Every item with quantity account is maintained under control account of purchases account either on cash or credit.

Sundry Creditors (Account Payable)

In case of getting something relating to expense from a person or an organization on credit basis, the company accrues or creates its liability debiting expense account and crediting person or firm account in general ledger under sundry creditors. Sundry creditors do not belong to trade relating to the purchase of merchandise for doing business.

Therefore, a person or firm supplies goods or services on credit basis relating to expense are also referred to sundry creditors or sundry payables.

The subsidiary ledger of sundry creditors may be made in case of huge volume of transactions under control account of Accrued Expenses payable in general ledger otherwise no need of creating subsidiary ledger.


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LEDGER MAKING

Advance from customers

If a company sells goods or services in advance, it records entry as cash debit and advance from customer credit in ledger account may refer to deferred revenue or unearned revenue and has obligation to deliver the goods or services in future otherwise to return cash under liability account.

The subsidiary ledger of customers under control account of advance from customers in general ledger can be created.

Trade Debtors

Account receivable account in general ledger indicates that the amount is receivable from the party to whom the goods was sold on credit that party is called trade debtor and the gathering of parties comes under trade debtor accounts which in order words are accounts receivable.

For making subsidiary ledger of accounts receivable or trade debtor accounts, we have to maintain journals like sales journal, sales return and allowances journal, cash receipt journal and adjustments of trade debtors through journal vouchers of those transactions that do not belong to journals or come after posting of entries from journals.

Trade debtors relate to goods or services for doing business.


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LEDGER MAKING

Sundry Debtors

Sometimes, the firm may have to give advance to suppliers for goods or services, deposit as security, loan or advance to staff etc. which are received after meeting the purpose may also come under sundry debtors and recorded in general ledger or we can subsidiary ledger of accounts having various persons or firms involved like loan to staff in large organization which is receivable bit by bit may be subsidized.

Hence, a person or firm is given money for something other than goods or services sold to them comes under sundry debtors.

Sale Ledger

Subsidiary ledger for sale either on cash or credit may be useful to control the variety of units sold under control account of sale.

The exact stock for trade may be ascertained by maintaining purchase and sales ledgers.

Loan to staff

It is seen that large organization which has thousands of employees require loan and advance against salaries; advance against salaries are adjusted in salaries for the month but loan requires time to settle, hence subsidiary ledger of loan to staff individually may be created under control account “loan to staff” in general ledger. The adjustment of loan deductions is journalized by pay roll as salaries expenses debit and loan to staff credit in general ledger and loan to staff individual account of subsidiary ledger in credit side.

Loan to staff belongs to the category of accounts receivable or sundry debtors.


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LEDGER MAKING

Ledger making

The art of recording transactions in specified columns is named ledger accounts under book title general ledger may be divided into two as general ledger and expense and revenue ledger and sub divided in subsidiary ledgers under control account especially accounts receivable and accounts payable and many other accounts as required to create according to requirement.

The gathering of accounts in debit and credit may be called trial balance which moves accounts towards financial position of the period.

The ledger account balances enable management to pay, receipt or adjust accounts. We may say that the best way to concise accounts is ledger accounting system.

WRITER’S VIEW


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Education

Ledger making volume ii