General ledger accounting methods: How to maintain general ledger accounts
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General ledger accounting methods: How to maintain general ledger accounts? Author: Ckrishwa
General ledger is a ledger in accounting and bookkeeping procedures which will contain brief details of all transactions both debit and credit in an organization.
All payment details and receipt details are posted in the general ledger head of account wise.
Every entry in the Cash book both debit and credit are to be posted daily in the general ledger head of account wise.
While making entry in the debit column of the general ledger gross amount need to be entered. Gross amount means net amount paid plus the amount if any to be adjusted from the payment.
If there is any adjustment entry in the cashbook it should be posted in the credit side of the relevant head of account.
All amounts received vide Receipt register should be entered into the general ledger head of account wise.
Journal vouchers entered in the journal registers should be entered into the general ledger head of account wise.
Receipts and payments as per Bank control account should be entered into the general ledger head of account wise.
Debit and credit columns of the general ledger should be summed up at the end of the month and arrive whether the particular head of account is debit balance or credit balance.
Debit balance or credit balance the balance as the case may be taken to Trial balance.
Balances are to be arrived at the month end in each head of account in general ledger. Normally every head of account will contain both debit and credit entries.
At the end of every month after completion of all postings from all sources all the debits and credits have to be summed up. If the debit balance exceeds the credit balance then the particular head of account is debit balance for that particular month.
Balances are to be arrived at the month end in each head of account in general ledger. Normally every head of account will contain both debit and credit entries.
At the end of every month after completion of all postings from all sources all the debits and credits have to be summed up. If the credit balance exceeds the debit balance then the particular head of account is credit balance for that particular month.
All the debit balances or the credit balances at the end of the month should be taken to trial balance as debit or credit as the case may be.
