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  • Analysis Chart: Ledger Monetary Transactions Are Recorded in The Form of Debit and Credit Rule

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    Deepika Chand
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    Each financial transaction affects two accounts with an equal debit and credit. A ledger records transactions with debits increasing asset and expense accounts and credits increasing liability, proprietorship, and revenue accounts. A three-column ledger contains debit, credit, and balance columns to automatically track account balances after each transaction. A trial balance is a list of all general ledger accounts used to verify the equality of total debits and credits.

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    Each financial transaction affects two accounts with an equal debit and credit. A ledger records transactions with debits increasing asset and expense accounts and credits increasing liability, proprietorship, and revenue accounts. A three-column ledger contains debit, credit, and balance columns to automatically track account balances after each transaction. A trial balance is a list of all general ledger accounts used to verify the equality of total debits and credits.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    9 views1 page

    Analysis Chart: Ledger Monetary Transactions Are Recorded in The Form of Debit and Credit Rule

    Uploaded by

    Deepika Chand
    Each financial transaction affects two accounts with an equal debit and credit. A ledger records transactions with debits increasing asset and expense accounts and credits increasing liability, proprietorship, and revenue accounts. A three-column ledger contains debit, credit, and balance columns to automatically track account balances after each transaction. A trial balance is a list of all general ledger accounts used to verify the equality of total debits and credits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Analysis Chart

    Each transaction affects two accounts (Debit and Credit)

    Ledger and Trial Balance


    Ledger
    Monetary transactions are recorded in the form of debit and
    credit
    Rule:
    Inc DR Inc CR
    Dec CR Dec DR

    Asset + Expenses = Liabilities + Proprietorship + Revenue

    Inc DR Inc CR Inc CR


    Dec CR Dec DR Dec DR
    Three Column Ledger Account
    Ledger with three columns namely debit, credit and balance.

    Advantages
    - Suitable for computers since balances are worked out automatically
    - Avoids monthly ruling and helps to calculate balance after each transactions

    Trial Balance
    A trial balance is a list of all the General Ledger Accounts (both revenue and capital)
    contained in the ledger of a business.

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