In: Accounting
What is ledger account? Explain using illustrations.
There are many accounting journals maintained in a business to record all the transactions done in a particular financial period of time. Ledger account is one of the accounts which need to maintain the journals. All journal entries, in a chronological order, are shifted to individual accounts. Recording journal entries into ledger is called as posting. Any information about a specific account in one place can be achieved from ledger account and the debit and credits of a already journalized accounts are transferred to ledger account in order to know so.
A ledger is a Specific “T” shape Format which contain an amount column and particulars column . Above the T shape account the left hand side there is debit Sign ( Dr.) Which indicate debit side and Right hand side indicates (Cr.) Which is a Credit side of Account.
Hence the journal entry are recorded in Ledger Account.
Eg. Ram A/c. Dr. To Cash A/c ?1000.
Hence Ram A/c debit side (right side) ? 1000 and Credit side of Cash A/c ?1000.