Ledger Account
LedgeAccount
(Also known as "T" Account and Account)
Having passed the double or journal entries, the next step is to post these double or journal entries into Ledger accounts. Ledger account or an account is simply the classification of double entries which we have made in General Journal or any other journal. In an account we bring together all similar entries in one place. For example a company has purchased goods on 4th and 7th January, we would put both entries in purchases account because of their similar nature i.e. the purchases and therefore an account shows net increase or decrease in the balance of similar entries / items (in the aforementioned example there was an increase in purchases balance)
Example of accounts is payable or creditor account, purchases account, sales accounts, receivable or debtor account, cash account, bank account, machinery account, building account, vehicle account etc
Each account is divided into Debit and Credit portions. Debit is the left hand side of an account and credit is the right hand side of an account. An account looks like English alphabet "T" which is why a ledger account is also referred to as "T" account
DEBIT
Account's Title
CREDIT
DATE
DESCRIPTION
AMOUNT
DATE
DESCRIPTION
AMOUNT
An Account has three main parts:
1. Title is the name of account
2. Debit is on the left hand side
3. Credit is on the right hand side
Posting
In Accounting the word "posting" implies that the process of posting or recording double or journal entries into an account
Classification of accounts
1) Real accounts or balance sheet accounts
These are the accounts of assets, liability and capital. These accounts remain open even after the end of an accounting period (e.g one year). Examples of these accounts include accounts of machinery, plant, creditors, debtors, bill payable, bonds, fixed deposits, capital etc.
2) Nominal accounts
These are the accounts of
(Also known as "T" Account and Account)
Having passed the double or journal entries, the next step is to post these double or journal entries into Ledger accounts. Ledger account or an account is simply the classification of double entries which we have made in General Journal or any other journal. In an account we bring together all similar entries in one place. For example a company has purchased goods on 4th and 7th January, we would put both entries in purchases account because of their similar nature i.e. the purchases and therefore an account shows net increase or decrease in the balance of similar entries / items (in the aforementioned example there was an increase in purchases balance)
Example of accounts is payable or creditor account, purchases account, sales accounts, receivable or debtor account, cash account, bank account, machinery account, building account, vehicle account etc
Each account is divided into Debit and Credit portions. Debit is the left hand side of an account and credit is the right hand side of an account. An account looks like English alphabet "T" which is why a ledger account is also referred to as "T" account
DEBIT
Account's Title
CREDIT
DATE
DESCRIPTION
AMOUNT
DATE
DESCRIPTION
AMOUNT
An Account has three main parts:
1. Title is the name of account
2. Debit is on the left hand side
3. Credit is on the right hand side
Posting
In Accounting the word "posting" implies that the process of posting or recording double or journal entries into an account
Classification of accounts
1) Real accounts or balance sheet accounts
These are the accounts of assets, liability and capital. These accounts remain open even after the end of an accounting period (e.g one year). Examples of these accounts include accounts of machinery, plant, creditors, debtors, bill payable, bonds, fixed deposits, capital etc.
2) Nominal accounts
These are the accounts of