Standard Form Of Ledger Account

                Standard Form Of Ledger Account

It appears that each account has got two similar sides-- the left hand is called debit side (briefly Dr.) and the right side is called credit side (briefly Cr).Now a days these two words debit and credit are not used, because it is obvious that the left hand is debit and right hand  is credit side.

Detailed discussions are being made below about the column of an account:

1.DATE:

The date of the transaction is written in this column in two lines__ in the first line the year and in the second line, first the name of month  and there after the actual date.

2.REFERENCES:

In this column  the name of the opposite account in the journal entry is written.For example, a journal entry contains two accounts, cash account is debited and sales account is credited. While making the posting in the cash account, amount will be written on debit side of the cash account in amount column but in the reference column the opposite account (sales account) will be written in the same way while making the posting in the sales account , amount will be written on the credit side  account in the amount column but in the reference the opposite account (cash account ) will be written.

3.JOURNAL REFERENCES (J.R).

The page number of the journal from where the transaction has been posted, is mentioned in this column. This will help in locating the entry in the journal easily.

4.AMOUNT:

The amount of the transaction is written in this column.