How to Manually Make Ledgers and Their Types

Rancakmedia.com – In this article we will discuss how to manually create ledgers along with their types, namely service company ledgers and trading company ledgers.

The way to create a ledger for a service company and a trading company is different. This is because businesses need venture financing, which is naturally a bit more complex than a service company.

1. How to Create a Service Company Ledger

The initial step in the preparation of ledger sheets. Ledger usually 1 book for 1 account if the service company uses manual accounting records. If computerized, 1 account data is on 1 Microsoft Excel page.

The next step is to write the date of the transaction in the Date column. As the journal data is posted, the transaction date is changed to the date shown in the journal.

When the general ledger is ready, the next step is to write the initial account balance. This balance is derived from the balance sheet at the end of the year. If there is no initial balance, enter "Initial Balance" in the Description column and enter 0 in the "Balance" column.

The next step is to fill in the Description column for information or transaction information on the account in question. If an account shows an initial balance on the balance sheet for the previous period (last year), this column for information is written as "Initial Balance".

Write the reference number in the Reference Number column according to the type of journal and the page number of the journal. Write in the relevant journal the nominal value of the transaction in accordance with the debit or credit column.

If the nominal value is a debit, the debit column enters the nominal value and the credit column writes the nominal value. The balance column is divided into debit balances and credit balances in the form of a double balance ledger.

Then, according to the results of each added or deleted transaction on the associated account, we complete the balance column. Finally, the ending balance is obtained from the ledger of accounts.

2. How to Create a Trading Company Ledger

For trading Company, the general ledger process is basically the same as a service company. The difference is that account data is collected and subsequently posted in the general ledger.

In the trading business, the data used consists of information from general/special journals which contain transactions related to buying and selling data in the special journal.

While the general journal includes transactions outside the special journal. Following is the procedure for creating a general directory for a trading company:

Prepare the ledger pages that will be used. Companies use computerized accounting in general. Ledger data for 1 account is then entered in 1 Microsoft Excel sheet. Write the transaction date in the Date column according to the transaction date in the journal.

Fill in the account opening balance in the first line of the general ledger column. The balance comes from the balance at the end of the year. If the account in question does not have an initial balance, "Initial Balance" is still written in the description column, but 0 is written in the balance column.

Write in the Description column a description or transaction description. If there is an initial balance figure for the account in the balance sheet for the previous period (last year), the description column is written as "Initial Balance".

Write the reference number in the Reference Number column according to the type of journal and the page number of the posted journal.

Write down the transaction nominal in the journal in accordance with the debit or credit column. Write down the balance according to the results of each transaction in the related account added or subtracted. From there, the ending ledger balance of the account is obtained.

So, now you know what types of ledgers are and how to produce them.

Before creating a ledger, choose a ledger that meets your needs and the needs of your company. You may want to use a T-shaped ledger or checking account if you are still running a small company and don't need to update your balances constantly.

However, you can use a single or multi-balance ledger if you operate a company that requires updating your balance positions. You can now quickly print ledgers without having to create them manually, because everything happens automatically.

FAQs

Below we have summarized some frequently asked questions about ledgers, as follows:

What Is the Purpose of a Ledger?

The general ledger can be used to record changes that occur in an account, due to financial transactions. Later, the general ledger will estimate whether there is an effect between financial transactions and changes in a number of accounts, such as assets, liabilities, and equity or capital of the company.

Conclusion

The process for creating ledgers for a trading company is basically the same as for a service company. The difference is that account data is collected and subsequently posted in the general ledger. This is because businesses need venture financing, which is a bit more complex than a service company.

You can now quickly print ledgers without having to create them manually, because everything happens automatically. Ledger data for 1 account is then entered into 1 Microsoft Excel sheet. Before creating a ledger, choose a ledger that meets your needs and the needs of your company.

This is information on how to make a ledger manually and its types, I hope the above article can be useful and helpful for all of you.