JOURNAL :
WHEN BUSINESS TRANSACTIONS TAKE PLACE. THE FIRST STEP IS TO RECORD THE SAME IN THE BOOKS OF ORIGINAL ENTRY OR SUBSIDIARY BOOKS.
THUS JOURNAL IS SIMPLE OF BOOKS OF ACCOUNTS IN WHICH ALL THE BUSINESS TRANSACTIONS ARE ORIGINALLY RECORDED IN CHRONOLOGICAL ORDER.
JOURNAL ENTRY FORMAT INCLUDED
DATE PARTICULAR L/F AMOUNT(DR) AMOUNT(CR)
IT IS ALSO KNOW AS JOURNAL ENTRY
LEDGER :
LEDGER IS A MAIN BOOK OF ACCOUNT IN WHICH VARIOUS ACCOUNTS OF PERSONAL, REAL & NOMINAL NATURE OPENED AND MAINTAINED.
IN THIS PROCESS PARTICULAR ACCOUNT CREATED TO FIND OUT BALANCE AS ON LIKE PURCHASE A/C - SALES A/C ETC
If the numbers of transactions are very large, then ledger can be divided into following types or parts.
1. Debtor ledger :-
These ledger accounts of customers are opened to whom trader has sold the goods, so its other name is also sale account ledger.
Because all credit sale’s amount can be checked from the amount due from debtors in this ledger.
It is also one place where we can find each debtor’s closing balance.
2. Creditor’s ledger:-
In this ledger accounts of suppliers are opened from whom trader has purchased the goods, so it is also called purchase ledger.
3. General ledger:-
In this ledger all journal entries are posted except relating to credit sale and purchase.
WHEN BUSINESS TRANSACTIONS TAKE PLACE. THE FIRST STEP IS TO RECORD THE SAME IN THE BOOKS OF ORIGINAL ENTRY OR SUBSIDIARY BOOKS.
THUS JOURNAL IS SIMPLE OF BOOKS OF ACCOUNTS IN WHICH ALL THE BUSINESS TRANSACTIONS ARE ORIGINALLY RECORDED IN CHRONOLOGICAL ORDER.
JOURNAL ENTRY FORMAT INCLUDED
DATE PARTICULAR L/F AMOUNT(DR) AMOUNT(CR)
IT IS ALSO KNOW AS JOURNAL ENTRY
LEDGER :
LEDGER IS A MAIN BOOK OF ACCOUNT IN WHICH VARIOUS ACCOUNTS OF PERSONAL, REAL & NOMINAL NATURE OPENED AND MAINTAINED.
IN THIS PROCESS PARTICULAR ACCOUNT CREATED TO FIND OUT BALANCE AS ON LIKE PURCHASE A/C - SALES A/C ETC
If the numbers of transactions are very large, then ledger can be divided into following types or parts.
1. Debtor ledger :-
These ledger accounts of customers are opened to whom trader has sold the goods, so its other name is also sale account ledger.
Because all credit sale’s amount can be checked from the amount due from debtors in this ledger.
It is also one place where we can find each debtor’s closing balance.
2. Creditor’s ledger:-
In this ledger accounts of suppliers are opened from whom trader has purchased the goods, so it is also called purchase ledger.
3. General ledger:-
In this ledger all journal entries are posted except relating to credit sale and purchase.
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