Accounting Entries are recorded in ledger accounts. Debit
entries are made on the left side of the ledger account whereas
Credit entries are made to the right side. Ledger accounts are
maintained in respect of every component of the financial
statements. Ledger accounts may be divided into two main types:
balance sheet ledger accounts and income statement ledger
accounts. Balance Sheet Ledger Accounts Balance Sheet ledger
accounts are maintained in respect of each asset, liability and
equity component of the statement of financial position.
Following is an example of a receivable ledger account: -
Balance brought down is the opening balance is in respect of the
receivable at the start of the accounting period. - These are
credit sales made during the period. Receivables account is
debited because it has the effect of increasing the receivable
asset. The corresponding credit entry is made to the Sales
ledger account. The account in which the corresponding entry is
made is always shown next to the amount, which