LEDGERS

Each transaction or monitory event is recorded first in the journal showing as which a/c is debited or which is credited.
Journal, however, is not enough; it is in reality no more than a list of transactions listed as they occur. Record of the same type of transaction is found at different pages of the journal and as such sucking information becomes very complicated.
To get rid of this problem, and to get a clearer picture, the 2nd process of accounting, i.e., classification is adopted. Through this process, all transactions relating to any item or subject matter are brought together at one place and arranged separately for increase and for decrease (debit and credit).
Thus, the net result (balance of each item/ subject matter) for a period can be ascertained. The resulting statement is called ‘Account’ and the book is known as ‘Ledger’.
In Ledger, we can take all accounts. Each a/c is allotted, one or more pages depending upon the requirements.