Form of Ledger:
One account usually occupies one page in the ledger. But if the account is big one it may extend to two or more pages. The pages of the ledger are vertically divided into two equal halves.
The left hand half or side is known as the debit (Dr.) side and the right hand half is the credit (Cr.) side. Abbreviations "Dr." and "Cr." are put on the top left and right hand corners. Each half part is further divided into four sections - (1) Date (2) Particulars (3) Folio (4) Amount, as follows:| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
Method of Posting:
The act of separately transferring each entry from journal to the respective account in the ledger is called posting. Posting consists of:
- Recording the relevant amount on the left hand side of the account which according to journal is to be debited.
- Recording the amount on the right hand side of the account which, according to the journal, is to be credited.
- In the ledger account, the first entry on the debit side is preceded by the word "To" and the first entry on the credit side is preceded by the word "By." The sign of ditto is placed before the subsequent entries.
Folioing:
Folio means folded page of account books. Account books are usually made of sheers of paper folded at the middle and vertically divided into two pages, each of which is called a folio. For ready reference the pages of our books should be numbered in numerical order. When we post the various entries from the journal into the ledger, we should write the ledger page in the ledger folio column of the journal and the page of the journal in the journal folio column of the ledger. This is known as folioing.