Principal Book of Accounts

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Oh! What is this? Principal book of accounts? Had you attended our accounting course, you would not ask this question. The answer is simple, it called ‘Ledger’. Ledger is the principal book of accounts where similar transactions relating to a particular person or property or expenses are recorded. It is a set of accounts. It contains all accounts of business enterprises whether real, nominal or personal. The main function of the ledger is to classify out sort out all the items appearing in the journal or other subsidiary books under their appropriate accounts so that at the end of the accounting period each account will contain the entire information of all the transactions relating to it a summarized or condensed form.

The following is the specimen ruling of the standard form of the ledger account.

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Ledger posting :
The term ‘posting’ means transferring the debit and credit items from the journal to their respective accounts in the ledger. So without practical accounting training also, you can do this. Still, certain minute things which are covered in various accounting courses are also explained here.

Following rules should be observed while posting transactions in the ledger from the journal.

  • Separate accounts should be opened in the ledger for posting transactions relating to different accounts recorded in the journal.
  • The concerned account which has been debited in the journal should also be debited in the ledger i.e., the debit of the journal entry is posted to the debit side. However, a reference should be made of the other account which has been credited in the journal.
  • The concern account which has been credited in the journal, should also be credited in the ledger i.e., the credit of the journal entry is posted to the credit side, but a reference should be given of the other account which has been debited in the journal.
  • It is customary to use the words ‘To’ and ‘By’ while making posting in the ledger. The word ‘To’ is used with the accounts shown on the debit side of the ledger account while the word ‘By’ is used with accounts which appears on the credit side of the ledger account.
  • In the folio column, the page number of the journal form where the entry is transferred to the ledger account is written.

The date of the transaction is written on the date column.

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So, it is very simple and easy. Only thing, which is expected of you is accuracy in the entire process. And for accuracy, all you need is to do lot of practice. Because, at our accounting training institute in Ahmedabad, while teaching various accounting courses, we stress utmost for accuracy.

If you have any questions or are looking for the best accounting training institute in Ahmedabad, you may contact us.