How to write Ledger

Prior to the preparation of the annual financial statements is carried out great preparatory work. At the end of the reporting period closes all the operating accounts, verified the correctness of the records on synthetic and analytical accounts, inventory of assets and liabilities, as well as closing journals-warrants and the Ledger.

Instruction

1. Ledger opens annually. Each row corresponds to a particular month, each account has its own reversal. To the General Ledger each month are transferred, the credit turnover in the context of linked accounts. In addition, it recorded total debit turnover. Once all amounts are entered, check that the turnovers on the debit and credit were the same. If equality is broken, you should find an error in the transfer data from log-loss or the records in them.
2. After checking the data output debit and credit balances for all accounts. In this case, remember that the active accounts have balances on the debit side. It is calculated as the sum of the opening balance on the debit and the turnover on the debit, then a credit is subtracted from the turnover. Liability accounts have credit balances. It is as follows: credit balance at the beginning of the month plus the turnover on the credit minus debit turnover.
3. In addition to the equality of revolutions when filling out the Ledger must be respected equality bills, i.e. the total balance of all accounts on the debit must equal total credit balances in the accounts. Subject to the equality existing credit and debit balances are transferred to the balance sheet.
4. Information from log-loss to the General Ledger is transferred, starting with credit turnover, i.e. the first written summary of the turnover on the credit of the magazine orders count "Circulation credit". These amounts should be written separately and as will be recording separate amounts in the debit of the account, the offsetting credit of the account specified in the journal-warrant, they are subtracted. This filling gives the opportunity to monitor the correctness of the accounts records to the General Ledger as the amount recorded on the credit of one account should be equal to the amounts mausima debit the appropriate accounts.