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Ledger Account Example
Ledger Account Example -
Overview Ledger accounts are the accounting units that present the summarized balances of transactions under each category A general ledger is the collection of these ledger accounts A business can have five types of ledger accounts assets liabilities equity revenue and expense
Ledger Account Examples Assets Cash Land Accounts receivable Equipment Liabilities Debt Accounts Payable Loans Accrued expenses Stock Stockholders Equity Common Stocks Retained Earnings Operative Revenues Sales Services Fees Operating Expenses Salaries and wages Office Expenses Depreciation Expense Ledger
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Following is an example of a receivable ledger account Balance brought down is the opening balance is in respect of the receivable at the start of the accounting period These are credit sales made during the period Receivables account is debited because it has the effect of increasing the receivable asset
Types of Ledgers Below are the three types of ledgers Sales Ledger A sales ledger is a type of accounting ledger that is used in businesses to keep track of all their sales and revenue This ledger shows the total amount collected from each customer
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Updated February 11 2024 Reviewed by Michael J Boyle Fact checked by Jiwon Ma What Is a General Ledger A general ledger represents the record keeping system for a company s financial data
Examples of common ledger accounts include Asset accounts such as cash prepaid expenses accounts receivable and furniture and fixtures Liability accounts including accounts payable accrued expenses lines of credit and notes payable Equity accounts such as common stock retained earnings
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https://www.toppr.com/.../ledger-accounts
Ledger Account Examples Assets Cash Land Accounts receivable Equipment Liabilities Debt Accounts Payable Loans Accrued expenses Stock Stockholders Equity Common Stocks Retained Earnings Operative Revenues Sales Services Fees Operating Expenses Salaries and wages Office Expenses Depreciation Expense Ledger
https://www.guru99.com/ledgers.html
For example instead of knowing that we spent 100 on car expenses in July 300 in August 600 in September 500 in November and so on our ledger will simply tell us we spent 1 500 in total By using ledgers we can summaries hundreds or even thousands of transactions into a single balance
Ledger Account Examples Assets Cash Land Accounts receivable Equipment Liabilities Debt Accounts Payable Loans Accrued expenses Stock Stockholders Equity Common Stocks Retained Earnings Operative Revenues Sales Services Fees Operating Expenses Salaries and wages Office Expenses Depreciation Expense Ledger
For example instead of knowing that we spent 100 on car expenses in July 300 in August 600 in September 500 in November and so on our ledger will simply tell us we spent 1 500 in total By using ledgers we can summaries hundreds or even thousands of transactions into a single balance
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