4.2 What is the format of the ledger accounts? Flashcards
How are the ledger accounts presented in a computerised accounting system?
The ledger accounts are presented in the columnar format.
How are the ledger accounts presented in a manual accounting system?
In a manual accounting system, the T-format is used.
What is the columnar format of the ledger account like?
The columnar ledger account has columns for date, particulars, debit amount, credit amount and a running balance.
How is the effect of each transaction recorded?
The effect of each transaction is recorded in the debit or credit column depending on how the account is affected.
How happens after every transaction is recorded?
The balance column is calculated to show the remaining balance.