Ledger In Accountancy in Commerce

Ledger: 

Ledger is the principal books of accounts where all acconts are stored permanently. It is the King of all books of accounts. It helps in preparation of trial  balance and final acconts.

Posting: 

   The act of transferring from Journal to ledger is called posting.

                   Ledger Accounts have two sides left hand side of the amount is called Debit sides and Right hand side of the accounts is called credit sides.

Balancing of an Account:

 If Dr. total of an account is more than Credit total than difference is shown on the shorter sides of by writing " By Balance C/d " and this is called Debit balance of an account. On next day in order to open the account such Debit balance will be shown on the Debit sides by writing " To Balance B/d".

             If Credit total is heavier than Debit total than the difference is shown on the Debit sides by writing "To Balance C/d" and this is called Credit balance. On next day to open the account Credit balance will be shown on credit sides by writing " By Balance b/d" . This whole process is called balancing of an account.

c/d: Carried down = Closing Balance

b/d: Brought down = Opening Balance.

What’s the Difference Between a Journal and a Ledger?

The journal and ledger both play an important role in the accounting process. The business transactions are primarily recorded in the journal and thereafter posted into the ledger under respective heads. While many financial transactions are posted in both the journal and ledger, there are significant differences in the purpose and function of each of these books of accounts.

MEANING:

The financial transactions are summarised and recorded as per the double entry system in a journal. It’s also known as the primary book of accounting or the book of original entry.

The ledger, on the other hand, is known as the principal book of accounting. It records the information from the journal in the “T” format. It is used to create the trial balance which is also the source of the financial statements such as the income statement and the balance sheet

RECORDING TRANSACTIONS:

The process of recording transactions in a journal is called Entry  while the process of transferring the entries from the journal to the ledger is called posting.

The transactions in a journal are recorded in a chronological manner in a Accounting year. On the other hand the arrangement of entries within a ledger has more to do with grouping like transactions together into specific accounts for purposes of assessing the data for accounting purposes.

Important Tips: 

Accountancy is a very easy subject as per my knowledge. Tha most important thing is that you have to take some steps to improve yourself. Always try to learn basic and minor things which is got to help in further education. Commerce is not as difficult as students think. The most valuable things is that always try to beat your best. Then only you can achieve your goals in most appropriate or easy way. Don't give up  always try to compete with yourself and try to beat your own best. My dear friends nothing is impossible to achieve  if you have confidence.

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