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Going down the Ledger Accounts Lane

Two important words Debit and Credit. Easy to pronounce but hard to calculate. When we maintain a book of these transactions, with Debit to the left and credit to the right, this balancing is called Ledger Accounting. Ledger Accounts are the master record of various different accounts in the accounting jargon.

Characteristics of Ledger Accounts:

  • Listing of both types of transactions debit and credit.
  • Dates should be maintained properly.
  • The difference between the columns represents the balance.
  • The totals of both the listing should not be same. Then there is no balance.
  • ¬†Remember this is Ledger Accounts not closing balance.

A quick glance to the types:

  • Standard form:

Used widely. Records date, name, account type and amount for both debit and credit.

  • Self-balancing form:

Less laborious method so used personally by students during exam.

Idea about the balance:

Difference between the two columns is the balance.

Process to equalize both sides is called ‘Balancing’.

Conclusions of Balance after calculations:

  • Total Debit > Total credit = Debit balance.
  • Total Debit < Total credit = Credit Balance.
  • Total Debit = total Credit = Nil Balance.

It is very easy to pen down class notes and follow the examples given in books, but the ground reality is entirely different. The class teachings are volatile the moment you step outside. The most important aspect is that the examples discussed in class are freebies when compared with homework. Assignments turn out to be easy when, 24x7assignmenthelp.com offer you with Ledger Accounts homework help. Grab it, as we understand you and your problems.

Why Ledger Accounts is tiring for students?

  • The root cause lies in the concept. A weak concept leads to misleading Accounts.
  • Confusion between the types and nature of Accounts, like Assets, Liabilities, Incomes.
  • Clouded knowledge about the Closing balance, where most students get confused.
  • Lack of assistance, and continuous failure leads to quitting.
  • Time management is utmost necessity.

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