Archive about 'Ledger Accounts'

Summary of Some Major Adjustments in Ledger on Balance Day

Tweet Ledger adjustments for the following major adjustments on Balance Day: Type of Ledger Adjustments Debit Credit Shown in Balance Sheet  As Accruals or Accrued  Expenses Expenses Account Accrued Expenses account Current Liability Prepayment or Prepaid Expenses Prepaid Expenses Account Expenses Account Current  Asset Accrued Revenue Accrued Revenue Account Revenue Account Current Asset Revenue Received […]

What are the advantages and disadvantages of having self balancing ledgers

Tweet See earlier articles on what are self-balancing ledgers and the difference between self balancing ledgers and section balancing ledger. Below tabulates the advantages and disadvantages of using the self-balancing ledgers: Advantages of having self-balancing ledgers: Localizes the errors and facilitates in quick detection with minimum efforts; Facilitates division of work amongst different accounting staffs […]

What are the differences between self-balancing and sectional balancing system

Tweet Earlier article explains what are self-balancing ledgers. Below distinguish the self-balancing and sectional balancing system used in bookkeeping:- (a)    Under self-balancing system, adjustment accounts are prepared in each ledger but in sectional balancing system control accounts are prepared only in General Ledger(b)   Under self-balancing system, separate trial balance in each ledger is prepared while […]

What do we mean by Self-balancing ledgers.

Tweet A self balancing ledger is one: Whose balances when extracted form a complete trail balance. Under this system there are three ledgers namely: (1)    Bought Ledger which contains the accounts of individual trade creditors (2)    Sales Ledger which contains the accounts of individual trade debtors (3)    General Ledger which contains all the remaining accounts […]

What do we mean by balancing ledger accounts?

Tweet BALANCING LEDGER ACCOUNTS:Balancing ledger accounts is normally done at the end of an accounting period where it is a routine process to have a balance  struck on each account in turn. This means that all the debits on the account are totaled and so are all the credits. If the total debits exceed the […]

Accounting Quiz or Test Your Accounting Knowledge On Principles Of Ledger Accounting

Tweet Refresh or test your accounting knowledge on principles of ledger accounting: QUESTIONS: 1.0  What is the distinction between personal accounts and impersonal accounts? 2.0  A debit entry in the cash account signifies a receipt of cash. True or false? 3.0   What are the ledger entries necessary to record: (a)    payment of a rent bill? […]