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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)
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