A good set of accounts is vital to any business today; it is proof of the business’ health. A ledger is a simple accounts document that records every transaction of the business that involves cash. This recording activity helps the company to track its revenue and expenses to identify the status of the company.
Every cent in cash or check is recorded as an input or output to the business. An inflow of revenue is called a ‘Credit’ while an outflow of funds is termed ‘Debit’. There must be a positive outcome from the Credit and Debit columns for the company to survive or progress in the business environment.
A ledger should be exercised on a daily basis, especially where the transactions are high. A monthly or yearly report can be generated for an overview of the credits and debits of the company. A ledger is usually handled by the accounts clerk who is familiar with at least the basic accounting structure so that the recording of transactions would be correct.
A ledger template can be in manual or electronic form. It is more tedious manually as the computation of balances must be accurate while an electronic version allows automatic computation of balances after the credit or debit values are entered.
The ledger template may contain:
* Company Name
* Transaction Item
* Check Number
* Check Amount
* Credit Column
* Debit Column
Consider the attached sample template for your convenience.