Question

Complete a flowchart of the steps taken to complete a ledger.

Answer 1

Hey buddy !!

Accounting is a clear step wise process wherein you record the transactions in the books of accounts using the accounting principles. In that the initial steps that occur which are very important are Journal & Ledger. Because passing the appropriate entries in the journal and appropriate posting them into ledger is very important as it would affect the ultimate position of the financial statements.

So following is the flow of steps to complete a ledger:

1. A transaction in economic terms is first passed by a entry in Journal by following the double entry system of accounting.

2. After the entry in journal, for appropriate posting into ledger one must understand the nature of the ledger and the balance it shows (Debit or Credit).

3. One has to check that the opening balance is properly recorded as per the nature of the account and properly carried forward from the previous year.

4. Then current year journal entries have to be posted into the ledger.

5. At the end of the year, all the ledgers have to be closed by recording the closing balance appropriately.

Its a very simple process but should be carried out carefully.

If you've any doubts please refer back. And also don't forget to give your valuable feedback. :)