Speaking on a general note, a ledger is a collection of financial accounts in case of a particular industrial organization. It may also be defined as a statement that summarizes all those transactions associated with people, assets, income and expenditure of a particular firm during a specific time period.

Also, it is important to note that preparing of accounts from journals to finally placing it on ledgers is known as posting in ledger. It is on this posted account that final results can be determined on.

This ledger accounts can be depicted by cash account, sales account, purchase account and sales return account amongst others.

Format of a ledger:

This account can be divided into two parts, the Left-hand side, known as Debit side and starts off with a ‘To.’ While on the Right-hand side, Credit is kept that starts off with a ‘By.’

Ledger 1

While posting into ledger, also certain particulars are placed along with amount.

Ledger 2

Ways to balance an Account:

Ledger 3

Firstly, total value on both sides has to be calculated. Next, that side which has highest value has to be put on both sides, while difference has to be found from lower value side.

This is known as Balance Brought Down; wherein it acts as closing balance for end of a specific period.

Ledger 4

Ledger 5

Ledger 6

Ledger 7

Ledger 8

Ledger 9

Ledger 10

Ledger 11

Ledger 12

Ledger 13

Ledger 14

Ledger 15

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