![]() Here we discuss the types of general ledger accounting and how does it work along with example and benefits.Keeping careful track of all of the financial transactions associated with your business is vital for a healthy organization. This has been a guide to What is General Ledger Accounting. At the same time, this requires skilled manpower for maintaining these transactions, therefore, this is a costly affair also. It also helps in the preparation of the trial balance, profit & loss account, and balance sheet.of people who are performing separate – separate responsibilities, therefore, this type of accounting method is used for recording the transactions of the entity. Now a day’s size of the business is very big and this is managed by a large no. The general ledger is just like a book where certain rules are defined to record the financial transaction of an entity so that it will give the financial position of the entity at any point in time.Now the above Entry will Reflect in General Ledger in below Manner: Step 5: At the end of the year balance of all the ledger will be transferred to the trial balance and all the ledger will be closed. Step 4: Similarly, all the transactions will be posted in the above manner over the period. Step 3: For every transaction, two accounts will be affected like for sales one revenue account and another one will be cash/bank account. Expenses will be debited and income will be credited. ![]()
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