Escolar Documentos
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Trail Balance
Ledger
Types of Accounts
There are 3 types of accounts. They are
Personal Account
Debit
all expenses
Debit
Debit What and losses
the Receiver
Comes In
Real Account Credit
Credit
Credit
What
thegoes
GiverOut
all incomes and gains
Nominal Account
Journal
Journal is the first book in which transactions are
recorded in a chronological order (Date Wise).
It is also called as the Day Book.
Recording entries in journal is called journalizing
The journal format is
In the books of …………..
Date Particulars LF Debit Credit
Journal
Goods purchased 2000
purchase
Cash account
Debit
is an expense
is
SoThere
Cash
cashaccount
is
aregoing
two on
Debit
all expenses
Real
so
What
Rule
account
debitComes
for
and
the&
losses
In
Rule
accounts
for
that
and
real
isinwhy
account
this
Credit
Purchases
purchases
nominalWhat
Credit
account
account
goes
account
Out
is
Credit
purchases
transaction
the Cash
account
account
all
Nominal
incomesAccount
and gains
Now the Journal Entry for this
transaction is
In the books of …………..
Date Particulars LF Debit Credit
Purchases a/c Dr. 2000
To Cash a/c 2000
(Being good purchased)
Ledger
Ledger is a book that contains several accounts
The process of preparation of accounts from the
journal into ledger is called posting.
The examples for the ledger accounts include sales a/c,
purchases a/c, cash a/c, bank a/c etc.,
The format of ledger account looks like a T shape
The format of ledger account is
Dr.
Name of the Account Cr.
2000 2000
2000 2000