The balance and posting of accounts in the ledger

 After recording the economic operations in the facility and making journal entries, we enter the next step of the accounting cycle, which is the transfer to the ledger and the balance of accounts, where a summary is made for each account with the debit and credit movements of the account, meaning that the ledger is an account statement for each account present in the facility where it appears to us at the end Account balance, whether debtor or credit.

The posting to the ledger book is done manually, but now, in practice, and with the development of accounting software, all you have to do is enter the journal entries in a proper manner, then the program will migrate in an automatic way and you can print the ledger from the program to see the account balance at any time.

We will explain in the book way so that you are familiar with the topic and because it is the basis.

This is the form of the ledger book, where it starts with the balance of the beginning of the period, whether it is on the debtor or the creditor side, then the accounts that came with the account are listed on the right side which is the debtor and the left side which is the creditor, but we put the credit party from the entry on the right side and the debtor party from the entry on the left side .

That is, the debtor side of the ledger, which is the right side, we put the creditor side of the record on it, and the credit side of the ledger, which is the left side, we put the debtor side on the record.

And this is the transfer to the ledger, then we come to the balance, to stand on the balance of each account, and the balance is the difference between the sum of the left and right debit sides of the credit.

In other words, the account balance is the difference between the two parties or the mathematical complement to them or the smaller party to equal with the larger party and the balance pertains to an accounting period.

The balance of the end of the period in the accounting period, which is the balance or the period in the next period, for example, if the balance of the end of the period in the fund ledger is 10,000 on the debit side in 2020, then the beginning of the period for the fund’s account in 2021 is 10,000 on the debit side, and so on on any account. The balance of the beginning of the period is called the opening balance or the revolving balance.

Then, the balance of each account is transferred and placed in the trial balance, and we will explain in detail the next topic, God willing.