How to Write an Accounting Ledger

Writing an accounting ledger can seem tedious at first, but the process is fairly routine. The ledger or GL (general ledger) is known as the principal or chief book of accounts. Line items in the GL are classified, according to a specific account order which is dependent on the type, nature and relevance of the transaction. The most challenging aspect of writing an accounting ledger is creating the ledger for the first time.

Difficulty: Moderate

Instructions

1. Obtain accounting software or a GL notebook. Each account should be allotted at least one page depending on the number of transactions that are likely to occur in that account.

2. Enter the transactions according to the date. Every entry should be dated. In general, the date falls on the left-hand side of the account, especially for "T" accounts. A T-account is a visual illustration of the account. The account title is on top of the "T." On the left side of the base of the T has debt entries/amounts; the right side of the base has credit entries/amounts.

3. Record the amount of the transaction on the left-hand side of the account (debit) and record the amount of the credit on the right-hand side. If you use software, it will help to determine the amount to debit/credit. In general, however, the account receiving the cash or good will be debited and the account giving away the cash or good will be credited.

4. Insert a "To" or "By" for debit (left-hand) or credit (right-hand) entries, respectively. Again, this is only necessary for manual entries.

5. Include notes about any other accounts involved in the transaction. Also, include the page number (if manual) and the relevant sub-accounts associated with the transaction.

References

• General Ledger Posting