Ledger Format

A ledger format has two sides i.e. Debit and Credit and columns of Date, Particulars, Journal Folio, and Amount on each side. A ledger is also known as the principal book of accounts, and its primary purpose is to transfer the transactions from journals into their respective accounts. Ledger is also known as the book of final entry as it helps in the preparation of accounting statements like the Trial Balance.

A general ledger is used by Companies that use the double-entry bookkeeping method, which means that each financial transaction affects at least two ledger accounts. Each entry has a dual effect, one which debits and the other credits. 

Format of Ledger A/c

* represents that a Ledger A/c can either have a debit balance or a credit balance.

We will discuss the items of the format one by one:

1. Date: In this column, the date on which the transaction was recorded is mentioned. The year is written at the top, following the month and then the day. 

2. Particulars: Every transaction affects at least two accounts. The name of the other account which is affected by the transaction is recorded here. 

Let’s take an example of a transaction to understand this, Machinery purchased for cash ₹5,000 on 1st April 2023.

The transaction will be recorded as,

3. Journal Folio or J.F.: Journal Folio shows the number of the page on which the Journal account of that particular item is made and on the basis of which the particular transaction has been made.

4. Amount: The amount involved in the transaction is mentioned here.