Format of a Ledger

The ledger account is divided into equal parts, the left hand is called Debit(DR) receiving, while the Right hand is called Credit(CR) giving. It has the following columns:

• Date Column: It is for recording the period business transaction took place.
• Particular Column: This shows the nature of business transactions.
• The Folio Column: This shows the page where your transactions have been recorded in the book of the ledger.
• Amount Column: It is used for recording the amount involved in the business transaction.

A Ledger has eight (8) columns but the simplest form of a Ledger is the “T” form. The Ledger account is balanced at the end of a specified period to indicate the amount left or the amount the organisation owes.

Common Bookkeeping Abbreviations

• A/C            Account
• DR            Debit
• CR              Credit
• CB              Cash Book
• B/D            Brought Down
• B/F            Brought Forward
• C/D            Carry Down