How postings are made in ledger accounts with single column cash books?

Banking & FinanceFinance ManagementGrowth & Empowerment

Following steps are followed while making entries in ledger account −

  • Opening balance and closing balance in cash books are not posted in ledger accounts.
  • Debit side entries of the cash book are posted in relevant accounts on the credit side in the ledger.
  • Credit side entries of the cash book are posted in relevant accounts on the debit side in the ledger.
  • Page numbers or account numbers of ledger accounts of respective entries are recorded and written in PR or posting reference columns of single column cash books.

Example

Consider an example for using the below cash book column to prepare general ledger (salaries)

Debit
Credit
Date
Description
VR
PR
Amount
Date
Description
VR
PR
Amount
YYYY July 01
Balance
c/d




5837
YYYY July 03
Salaries


320
2500
July 06
Sales


210
2800
July 07
purchases


325
2000
July 09
Sales


210
3850
July 10
Furniture


327
1560
July 12
Sales


210
4200
July 15
Stationary


330
500
July 20
Sales


210
5630
July 25
Rent


335
2500










July 31
Balance c/d




13257








22317








22317
Aug 01
Balance b/d




13257










General ledger (salaries)

SALARIES            No.320
Date
YYYY
Description
VR
PR
Amount
Date
YYYY
Description
VR
PR
Amount
July 03
SALARIES
35
2500












raja
Published on 08-Jul-2021 13:25:30
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