Saturday, March 10, 2007

How to record Ledger Account

Recording transaction in the Ledger Account is based on the double-entry system. Based on double-entry system, when an account is debited, another balancing account must be credited. Account is shown in T format. The debit or credit principal is very simple. When value is increased, then the account will be debited. When the value is decreasing, then the account is credited.