Let us see various formats of ledger accounts:
|In the books of M/s. ABC Company|
|Ledger account of M/s XYZ LTD.|
|xxxx||To Balance b/d||xxx||Xxxx||By Balance b/d||xxx|
|xxxx||To Name of the debit account||xxx||Xxxx||By Name of Credit account||xxx|
|xxxx||To Balance c/d||xx||xxxx||By Balance c/d||xx|
|Total Rs.||xxxx||Total Rs.||xxxx|
Nowadays, the handwritten books are being replaced by computerized accounts. The companies majorly use a six-column format to maintain ledger accounts of their customers. It looks as follows:
|In the books of M/s. ABC Bank Ltd.|
|Ledger account of M/s XYZ Ltd.|
|Debit||Credit||Dr. / Cr.||Amount|
Format-1 is used for academic purpose. Hence, this format is useful to learn the basics and principles of accounting.
Format-2 is used by banking and financial organization as well as well as by most of the business organizations.