![]() with details of every transaction – the date, description and amount – read as follows: The local sports shop, In-Town Sports Co, collected some shirts from me (so no post or packing on this sale) and I agreed they could have 30 days’ credit.Īt the end of January my Cash A/c.I had to pay the postage on the sales I made.I made 3 cash sales during the month and charged post and packing extra.I purchased 250 plain t-shirts and had them printed.I deposited £1,000 into a business bank account.My transactions in January were as follows: I am purchasing plain t-shirts, having them printed and advertise them on e-bay. Let us say that in January I started a new business. You add new accounts below the last one and continue working down the spreadsheet. One advantage of using the spreadsheet is when you run out of space on any account you merely insert some extra rows. Set the column widths and add vertical lines to give you the layout you would find in the ledger books. For example the ledger from the “Silvine” range or the high street shop such as W H Smith’s “Double Entry Ledger – Book Keeping Account Book” which has about 40 lined pages for ledger entries.Īnother option, and the one I have used for the following demonstration, is to create accounts within an Excel spreadsheet. Manual Ledger Entriesįor the smaller businesses ledgers similar to exercise books can be perfectly adequate. ![]() If I were selecting someone to join my accounts department the ideal candidate would firstly have an understanding of accountancy basics via manual system studies (which you are learning here), and secondly be familiar with our accounting package (or at least a very similar package). When you have an understanding of the manual bookkeeping system you will recognize how the entries are handled by your chosen computerized package. Popular accounting packages and the free training available will be covered in a later lesson. As the number of accounts grows you will reach the stage where a computerized accounting package will be more economical. The ledger is a book which contains all the accounts of the business. To go back to Lesson One Click Here The Ledger With Double Entry Bookkeeping Examples In this lesson I start by showing the full entries as you would expect to find them in your business records. As I am sure you will understand just putting values on the debit or credit side of an account is not enough. My first lesson likened an account to the letter T, which is an accepted method for learning the initial basics of bookkeeping. ![]() The double entry bookkeeping example shown in this the second lesson of my free course, includes the information we need to add with each entry to our ledger. ![]()
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