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A ledger account consists of the financial transactions of a business. It is generally used by the accountants to record the summarized monetary transactions. It is also known as the principal book of accounts and books of final entry. As per my understanding, the 'Debit and Credit format' refers toRead more
A ledger account consists of the financial transactions of a business. It is generally used by the accountants to record the summarized monetary transactions. It is also known as the principal book of accounts and books of final entry.
As per my understanding, the ‘Debit and Credit format’ refers to a ‘Ledger account format’ which is as follows:
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Note:
Example
Considering the journal entries of ABC Ltd., post the same into ledger accounts.
Cash a/c
(The cash a/c has a debit balance as it is an asset.)
Machinery a/c
(The machinery a/c has a debit balance as it is an asset.)
Hope this helps.
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