The Ledger Of Accounting

Meaning of Ledger
The ledger is a book that contains a collection estimates are interconnected and summarize the effects of transactions to changes in assets, liabilities and capital of the company. The number of large book estimates the company needs vary, depending on the financial and corporate wealth, the volume of transactions, as well as the desired information. In a bookkeeping process, after the recording of transactions in the general ledger, then the transaction is recorded in the general ledger is by way of transfer the amounts contained in the journals into the appropriate ledger, bookkeeping activity is called post.

Type Ledger
1. General Ledger (General Ledger): General Ledger is often called the master ledger,  all existing estimates in a given period as cash, accounts receivable, accounts payable and inventory capital. These estimates are mutually independent and functioning summarize the effects of transactions to changes in assets, liabilities and capital of the company. General Ledger system displays the transaction process for General Ledger and Financial Reporting Cycle.
Objectives General Ledger (General Ledger):

-Record all accounting transactions accurately and completely.

-Posting transactions to the appropriate accounts.

-Maintaining balance debits and credits to your account.

-Journal entry accommodate the required adjustments.

-Generate reliable financial reports and timely for each accounting period

-Function General Ledger (General Ledger):

-Collect transaction data

-Classify and encode data and account transactions

-Validating the transaction raised

-Updating-kan and General Ledger Account Transaction File

-Recorded adjustments to Accounts

-Preparing Financial Statements

2. Ledger (Subsidiary Ledger): often referred to as an additional book, which is a group account specifically recorded details of accounts receivable and accounts payable that serve members more detailed information. In general, Manufacture Ledger is for accounting controls, many elements, such as Payable, Accounts Receivable, and Inventory.
Ledger is divided into two, namely:

a. Ledger Accounts receivable Trade accounts receivable are often called the book reserved for subscription detailing credit, to who are the company's sales transactions of credit, where the address and what amount. In the book of accounts receivable, a state bill to each customer are recorded in separate lists. Changes in the overall accounts receivable are recorded at the estimated accounts receivable in the general ledger, as a parent forecast. While changes to the respective subscriptions recorded on each estimate in the forecast accounts receivable ledger.
b. Ledger debt is often called the book debts. This book provided specifically for each supplier recorded in detail the number determined by the number of suppliers who provide loans, either in the form of merchandise or other assets. Just as in the book of accounts receivable, the book of state debt at each supplier are recorded in separate lists. Changes in overall debt is recorded at the estimated payable in the general ledger. While changes to the respective suppliers, are recorded on an estimate of each in the subsidiary ledger.

Use of ledgers have some advantages as follows:

1. Facilitate the preparation of financial statements, due to general ledger accounts consist of a smaller number. It also will reduce errors in the general ledger.

2. Accuracy in bookkeeping can be tested by comparing-right balance in the general ledger account with the amount of balances in the ledger.

3. Can be held occupation division of tasks in accounting.

4, Allows daily booking of evidence supporting the transaction into the ledger.

5. Can be immediately know the number of the various elements


Authority from : CEO Indonesia