As the story of each transaction is told in the Cash Book, Day Book, or Bills Receivable Book, the Ledger does not furnish a history of each transaction ; therefore less space will be required, and both sides of the account, the debit and credit, may be kept on one page, while in the Cash Book two pages are required for the accounts. The rulings for the Ledger, as you will observe, are entirely different from those of the preceding books. Spaces are provided for the date, for the folio of the Cash Book or Day Book, and for dollars and cents. Every item found in the Ledger should have a reference back to another book, where explanation can be found of the transaction.

How Accounts Are Arranged In The Ledger

While you may give one full page of the Ledger to each account, it will often be found more convenient to arrange two, or even three accounts on a page. The first, of course, will be at the top, and the second one, half way down. The name of the account is always written in large script in the centre of the page, from left to right, with Dr. and Cr. at the left and right respectively. The year may be written either immediately below or above the top line. If any one account is an important one, Which is likely to be used freely, and which may contain many item*, it will be best to allow it a full page.

When all the space on any given page is filled, the account is transferred to another page by closing it with the words, " To" or " By Balance carried to Folio (-)" and beginning the transferred account on the new page with the words, "By," or "To Balance from Folio (-)" On page 58 are shown three accounts written up as they would appear in the Ledger, on three different folios, namely, 10, 12 and 13. Taking the first account, E. J. White, the first item of $160.00 is brought from the Cash Book and indicated by "1" in the folio column. The second item on the debit side, $80.00, is from the Bills Payable Book, and on the credit side item $300.40 brought from the Day Book, as indicated by the folio " 1." As the credit side exceeds the debit side by $60.40, we write on the debit side in red ink, "June 30, Balance $60.40," beneath which we draw one Horizontal line on each side, in red, bring down the total $300.40 beneath, draw double red line, and the account is Closed for the half year. The balance of &60.40 is brought down under the credit side, indicating that we are in debt to E J. White to that amount. It may be observed that in writing up this set of accounts the beginner should follow particularly the style indicated by the script pages of Journal, Cash and Ledger.

LEDGER   SINGLE ENTRY.

LEDGER - SINGLE ENTRY.

This page should be studied and copied as it is a model for penmanship, arrangement and ruling. * Lane is written in red.

January 1, 190 -.

--------------------.------------------------------------------------------------------------------------------

Began business this day, investing $4,000 in cash

10

E.J. White, Bought of him as per invoice Cr.

300

40

12

Harry Short, Bought of him as per invoice Cr.

482

00

13

Mrs. Pearl Cook, Bought of her as per invoice Cr.

600

00

14

Ralph Wilson, Bought of him as per invoice Cr.

248

60

15

M. Young, Bought of him as per invoice Cr.

397

28

16

3 Jones & Co., Dr.

Sold them the following goods, 1/2 cash balance on note at 3 months

Books

Paper $48.00 and Pads $44.00

52 92

80 00

144

80

17

A. Daniel, Sold him Mdse. Dr.

101

60

18

Bowers & Co., Sold them Mdse. Dr.

148

64

15

M. Young, Paid him notes Dr. A. Daniel Bowers & Co.

61 148

60 64

210

24

19

W. Henderson, Bought of him Mdse. Cr.

240

00

10 20

W. Henderson. Sold him Mdse. Dr. Mackey & Co., Sold them Mdse. Dr.

164 40

60 00

21

M. H. Smith, Sold him Mdse. Dr.

36

48

22

A. M. Jenks, Sold him Mdse. Dr.

160

00

23

E. Solly, Sold him Mdse. Dr.

240

00

24

F. M.Johnson, Sold him Mdse. Dr.

148

40

25

June 20------------------.----------------Gerhart & Co., Bought of them Mdse. Cr.

104

40

26

Woolson, Williams Co., Bought of them Mdse. Cr.

400

00

27

George Page, Bought of him Mdse. Cr.

348

80

28

D. Adams, Bought of him Mdse. Cr.

341

60