PRINCIPAL OF DOUBLE ENTRY- SINGLE COLUMN.
Hey Guys, Happy Monday!!! Hope you enjoyed your weekend, cos
I did. Any way its Monday again and we are here to learn something new. So
let’s get started.
LEDGER is the
final destination of all transactions in the subsidiary books (that is the
sales day book, purchases day book etc). It is the most important book of
account because it is the book that contains permanent records of all
Transactions in a summarized and classified form. Transactions are recorded
here, using the Double Entry System of Bookeeping.
RULES OF
DOUBLE ENTRIES:
1. For Every
Credit Entry in an Account, there must be a Corresponding Debit Entry in
another Account.
2. For Every
Debit Entry in an Account, there must be a Corresponding Credit Entry in
another Account.
3. All
Transactions must be Credit and the other.
DIVISION OF
LEDGER:
1.
Personal
Ledger: These are ledgers for
Creditors Account and Debtors Accounts. For example, Purchases and Sales Ledger.
2.
General
Ledger: These are ledgers for
Real and Nominal Accounts. For example, Expenses Account, Income Account, Sales
Account, Purchases Account and Assets Account.
3.
Private
Ledger: These are Ledgers for
Capital and Drawings Account of the Owner. The Book is divided into separate
sections called Accounts, which may have one page or more. The Main Advantage
of subdivision is to permit the clerks to attend concurrently to the various
groups of
