Ledger
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The Ledger is a book of final or ultimate entry and is very important as it contains the essential details of pecuniary transactions.
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The first/prime entry though made in the books (Journal) is ultimately recorded in the ledger.
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Ledger contains the various accounts and shows the final and actual effect of transactions.
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The method of entering details or information the from the journals to the ledger is known as posting.
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Postings are made not only from the journal but also from the book of subsidiary journals.
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First of all, Opening entry should be posted as it indicates the balances with which assets and liabilities start the new period.
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The way to post the opening entry is to write as the debit side of various assets (which have to be debited according to the opening entry). ‘To balance brought down’ or just ‘To balance b/d’
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Last modified: Thursday, 14 June 2012, 10:32 AM