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Accounting Ledger, Financial Accounting Tutorial, Accounting Course, Accounts Primer

Thursday, 17-May-2012

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HiTech Accounting Software, Billing Software, Inventory Control Software for Various Business Segments

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Online or Web based Accounting and Inventory Control Application including a online store for your business with a shopping cart and credit card interface. Globally accessible from any internet browser.

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Web or internet based, browser driven software, globally accessible, secure and reliable, run from any computer, no software downloads, protected by password, multi user accounting, billing and inventory control system ...
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Financial Accounting and Business Management of all kinds of business, industry and services is now possible with HiTech Accounting Software made for specific business segments. Click the following links for more details and free 30 days full featured evaluation download.
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Financial Accounting and Business Management of all kinds of business, industry and services is now possible with HiTech Accounting Software made for specific business segments. Click the following links for more details and free 30 days full featured evaluation download.
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Financial Accounting Tutorial Home Page

Accounting Ledger

In this web primer we will also discuss:

Ledger is the most important book of accounting. It contains summarized, classified description of all the business transactions. It is divided into various parts and each part is termed as 'account'. It is necessary to gather at one place all transactions, during the period, relating to a particular subject-a person, a thing, a class of expenses, incomes etc. It is only then that the net results can be ascertained.

Thus the first step in the procedure of recording transactions is to journalize and the second step is to post the transactions in the ledger. Ledger is known as the 'principal or chief' book of accounts. In ledger the financial information is classified by its nature and relevance.

The statement which records the transactions at one place relating to a particular subject is known as account. The book which contains all the accounts is known as ledger and the procedure of writing up the accounts is known as posting.

The ledger is the most important book of account and is the destination of the entries made in the Journal or Sub-divided Journals. It is a collection of all the three types of accounts --Personal, Real and Nominal. If you are faced with questions like:

- How much a particular customer owes you?

- What is the amount payable by you to anyone of your suppliers?

- What is the amount of goods purchased by you during specific period ?

- How much sales you have affected during, say, last three months?

- What has been your expenditure on, say, labor during the period?

Then the quicker and easier way of ascertaining the relevant information is to turn to your ledger, find out the balance of the Customer's A/c or Supplier's A/c or Purchases A/c or Sales A/c or Wages A/c.

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