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when separate ledgers are maintained for trade debtors and trade creditors
,the debit and credit aspect of certain transactions will note appear in the same ledger
Eg: in case of credit sales ,the credit aspect (Sales account) will appear in general ledger whereas the debit aspect (personal account of debtor)will appear in debtors ledger .Take another Eg.like cash discount allowed by a creditor .The credit aspect (personal account of the creditor )will appear in creditors ledger .Thus no ledger is self balancing and it is not possible to prepare a separate trial balance for each ledger .Hence in ,in order to make each ledger self -balancing it is necessary that the corresponding debit and credit aspects are fully "adjustment accounts " in each ledger . the adjustment account helps in completing the double entry in each ledger and making it self balancing . The adjustment account opens in various ledgers are;
1 ) general ledger adjustment account(in debtors ledger)
2 ) general ledger adjustment account(in creditors ledger)
3 ) debtors ledger adjustment account (in general ledger)
4 ) creditors ledger adjustment account (in general ledger)
What else can I help you with?
What is Self-Balancing system in accounting?
Under the self-balancing system, it is possible to construct a complete trial balance from each ledger, debtors ledger, creditors ledger
What is meant by choice based credit system?
choice crditi system is---------------- for girl
What is meant when one says that there is no proof of income mortgages?
No proof of income mortgages means a Self-Certified mortgage. A Self-Certified mortgage means that you do not want to tell the mortgage underwriter your exact earnings.
What the disadvantages and advantages of monitoring and control system?
it checks on an error and it will solve the fault by it's self
What is dividend-balancing?
dividend balancing means dividend due to foreign partner in foreign exchange have to be matched with foreign exchange earnings i.e income from exports.
What do you understand by Sectional Balancing How does it differ from Self Balancing?
importance of secyional balancing system
What is the differences between self balancing ledger and sectional balancing ledger?
Below self balancing scheme, change financial records are ready in every ledger but in sectional complementary scheme control the books are set only in General Ledger
What is Self-Balancing system in accounting?
Under the self-balancing system, it is possible to construct a complete trial balance from each ledger, debtors ledger, creditors ledger
What is self balancing ledger?
Self balancing ledgers is system in which two or more ledgers are balanced through making general or nominal ledger.
System to prepare self balancing form of ledger?
profit and loss
What are the uses of control accounts?
they are used for self balancing
What is meant by Metis self government?
the self-gove
What is meant by administrative system in business?
What is meant by administrative system in business? What is meant by administrative system in business?
What factors contribute to the maintenance of a steady state equilibrium in a dynamic system?
In a dynamic system, factors like feedback mechanisms, self-regulation, and external influences help maintain a steady state equilibrium by adjusting and balancing the system's components to counteract any disturbances or changes.
What is dynamic conservation?
By President Eisenhower : "Dynamic Conservation": which meant balancing economic conservatism with some activism.
On the computer platform Linux, what does load balancing mean?
Load balancing uses multiple hardware devices to make tasks more efficient. Also, using load balancing increases system speed
What are the benefits of using a self balancing bicycle for adults?
Using a self-balancing bicycle can improve balance, coordination, and core strength for adults. It can also provide a more stable and comfortable riding experience, making it easier to navigate different terrains and reduce the risk of falls.
