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The ledger accumulates all data necessary prior to the preparation of financial statements. All
similar transactions recorded in the journal are grouped together in the ledger.
The ledger appears basically in the form of capital letter T. The left side of the ledger provides
the data for debit entry, and the right side of it presents information about the credit entry.
The ledgers are arranged in the following order of accounting elements: assets, liabilities,
capital, income and expenses accounts.
The ledger has the following major parts:
1. the account title and page number;
2. the debit side;
3. the credit side.
Example:
15 Borrowed money from Metro Bank, ₱200,000 for additiona;l working capital.
Journal
Ledger
Is the process of adding the debit and the credit money columns of the ledger and finding their
balances.
- If an account has a debit balance, the debit total is higher than the credit total, the difference is
placed on the “Particular” column of the debit side.
- If an account has a credit balance, the credit total is bigger than the debit total, the difference is
placed on the “Particular” column of the credit side.