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Ledger
Journal is not the final record of transaction. It is simply the book of original entry in which transaction are recorded in chronological order. From the journal book it is not easy to find out the total quantity of goods bought and sold in cash and on credit , total incomes and expenditure and total assets and liabilities. Therefore in second time the amount of transaction is concerned in accounts. Ledger is the main book of account. It is the final record of transaction. From the ledger accounts, the trader can find out the quantity of goods bought and sold, total incomes and expenditures and total assets and liabilities.
There are eight columns in ledger. The First four columns are for debit side and second four columns are for credit side. Left hand side is for posting debit amount and right hand side is for posting credit amount. Posting in the ledger is made following the rules of debit are on the basis of journal. At the end of the month, ledger account are closed and balanced to find out debit and credit balance of account.
debit credit
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anount
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amount
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