How to Create a Ledger

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A ledger is used to keep track of transactions made within a business. It is a way to keep track of the amount of money in your business' accounts. Also, it's a good method to chart your company's expenditures and sales revenue. There a few steps to starting a ledger, and it can be done by using a computer or by hand. Also, the information to be recorded can vary, depending on your personal or the business' preferences.

Create a table using either Microsoft Excel or another type of software program. The table should have six columns and as many rows, depending on the number of transactions you need to record.

Type the word "date" in the top and far left corner. Below "date," record the date of each transaction.

Type the words "check number" in the next column or to the right of the "date" column. Below "check number," write the number of the check that was used for the transaction, if a check was not used, put a line through the box.

Type the words "transaction details" in the next column or to the right of "check number." Under "transaction details," type a brief description of the transaction. Type the name of the person or company involved in the transaction and the purpose of it.

Type the word "debit" in the next column or to the right of "transaction details." Under "debit," write the amount of money your company paid in the transaction.

Type the word credit in the next column or to the right of "debit." Below "credit," write the amount of money your company received in the transaction.

Type the word "balance" in the next column or to the right of "credit." Under "balance," record the new money total for your company by either adding or subtracting the amount of the current transaction.