There are two forms
namely;
namely;
1. Standard form
2. Self-balancing form
Standard
form of ledger account
form of ledger account
To understand clearly as
to how to write the accounts in ledger; the standard form of an account is
given below with two separate transactions.
to how to write the accounts in ledger; the standard form of an account is
given below with two separate transactions.
Example
Enter the following
transactions in journal and post them into ledger
transactions in journal and post them into ledger
2010
Jan 1 Mr. Paul started business with cash N100,000
Jan 2 He purchased furniture for N20,000
Jan 3 He purchased goods for N60,000
Jan 5 He sold goods for cash N80,000
Jan 6 He paid salaries N10,000
Solution (Journal)
Ledger :Cash Account (No.
9)
9)
Self
Balancing Form of Ledger
Balancing Form of Ledger
In practice, the standard
form of the ledger account is not used. But it is usually used for examination
purposes. The advantage of the self balancing ledger is that the balance of the
account after each transaction is available at a glance from the last column.
So much time and labour is saved.
form of the ledger account is not used. But it is usually used for examination
purposes. The advantage of the self balancing ledger is that the balance of the
account after each transaction is available at a glance from the last column.
So much time and labour is saved.
