Lesson 4, Topic 4
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