ledger

Examples of ledger in the following topics:

• Posting

  • Posting is recording in the ledger accounts the information contained in the journal.
  • Each individual journal entry directs the input of a certain dollar amount as a debit in a specific ledger account, and directs the input of a certain dollar amount as a credit in a specific ledger account.
  • When posting the general journal, the date used in the ledger accounts is the date the transaction was recorded in the journal, not the date the journal entry was posted to the ledger accounts.
  • The general ledger contains all entries from both the General Journal and the Special Journals.
  • Describe how posting affects the General Journal, Special Journal and General Ledger

• Inputs to Accounting

  • Inputs into accounting include journal entries, the bookkeeping process, and the general ledger.
  • The bookkeeper is responsible for ensuring all transactions are recorded in the correct day book, suppliers ledger, customer ledger, and general ledger.
  • General Ledger is the final repository of the accounting records and data.
  • Each account in the general ledger consists of one or more pages.
  • The general ledger is where posting to the accounts occurs.

• What Is a Receivable?

  • The accounts receivable departments use the sales ledger.
  • This is because a sales ledger normally records:

• Accounts Payable

  • In addition to its disclosure on the balance sheet, accounts payable is recorded in the A/P sub-ledger at the time an invoice is vouchered for payment.
  • Vouchered, or vouched, means that an invoice is approved for payment and has been recorded in the general ledger or A/P sub-ledger as an outstanding, or open, liability because it has not been paid.

• Activities to Manage Receivables

  • The accounts receivable departments use the sales ledger.
  • This is because a sales ledger normally records:
  • The entry would consist of debiting a bad debt expense account and crediting the respective accounts receivable in the sales ledger.

• Bonds Issued at Par Value

  • All transactions made by the company in relation to the bond must be recorded in its general ledger.
  • The general ledger contains all entries from both the General Journal and the Special Journals.

• Reversing Entries

  • To get the expense correct in the general ledger, an adjusting entry is made at the end of the month A for half of the interest expense.

• The Post-Closing Trial Balance

  • It is prepared after all of that period's business transactions have been posted to the General Ledger via journal entries.
  • The post-closing trial balance can only be prepared after each closing entry has been posted to the General Ledger.

• Reporting Cash

  • A company's general ledger may have several accounts detailing how much cash it has.

• The Trial Balance

  • It lists all of the ledger, both general journal and special, accounts and their debit or credit balances to determine that debits equal credits in the recording process .
  • If the total of the debit column does not equal the total value of the credit column then this would show that there is an error in the nominal ledger accounts.
  • The journal entries were then posted to the general ledger.
  • Some reasons why the general ledger may be out of balance: