How to Prepare a Ledger in Your Accounting Coursework Writing?
While studying an accounting course, students are required to write coursework. Sometimes, they need to prepare a ledger in it by using the right journal entries that they have passed while recording any transaction. But, because of the lack of knowledge on how to prepare a ledger, they make mistakes related to dates, debit or credit the amount, and so on.
If you want to know how to prepare a ledger and include all the required accounts, go through this write-up brought to you by Instant Assignment Help Australia. Our accounting coursework help experts have explained the 5-step process to prepare a ledger.
- Set Up Your Journal Page
You need to use a spreadsheet or computer accounting program like Tally to set up your journal page. It is the first step in the preparation of ledger in which the page should be divided into five different columns:
- Date
- Account
- Description
- Reference Number
- Debit
- Credit
- Record Transactions According to the Date
Every accounting transaction comes with a date and amount. While preparing a ledger in accounting coursework, you need to pay the right amount of concentration to analyze the date and record the transaction accordingly. The dates must be used to know which transaction should be recorded first and later. You cannot afford to make mistakes related to dates; otherwise, the entire transaction and even account that you have created will be of no use.
- Categorize Every Account & Its Transactions
In this, you need to specifically categorize every account and its transaction to the right section. For instance, if $600 are added to your business cash on 20-08-2019, there are a few accounts that will get affected:
- Cash - If your business has received $600 cash, then the cash balance will get increased by the same amount.
- Accounts Payable - If you have received that $600 as a loan in your business, you need to note $600 under your accounts payable journal.
- Accounts Receivable - It is the account that shows the amounts your business owed.
- Mark Each Transaction with a Debit or a Credit
A ledger has two sides, i.e., debit and credit. Debit shows the balance of all your assets that increases the worth of your business. On the other hand, credit shows the balance of all the expenses and liabilities of the business. While preparing ledger in accounting coursework, you need to correctly identify every transaction type and record the same under the right head, i.e., debit or credit.
- Label Your Journal
Just like you have marked every transaction with a debit or credit according to date, you need to make a few changes in the journal entries. It is essential because you prepare ledger by taking journal entries as your reference. So, label your journal entries with required narration after using them. It is the last step in preparing a ledger account.
Summing Up!
These are the five steps that you need to follow to prepare a ledger in your accounting coursework. In case you struggle to understand any of the aforementioned points and face difficulty in writing, you can seek coursework writing service from Instant Assignment Help Australia writers at any time of the day.
