How to read a general ledger report
The general ledger holds the double entry. Read one account as the software prints it, follow the running balance and find a cost in the wrong account.
Task 1The layout of the report3 questions
The general ledger is the set of accounts that holds the double entry: one account for each asset, liability, capital, income and expense.
Software keeps the general ledger for you. It prints any one account as a general ledger report, with a line for each entry.
- Reference
- the document the entry came from. PI is a purchase invoice and PCN is a purchase credit note
- Debit and Credit
- the amount of each entry, in the column of its side
- Balance
- the running balance after each line. Dr or Cr shows which side it is on
| Date | Reference | Debit | Credit | Balance |
|---|---|---|---|---|
| 1 Jul | Balance brought forward | 6,480.00 Dr | ||
| 4 Jul | PI 7790 Penrose Clay Supplies | 540.00 | 7,020.00 Dr | |
| 12 Jul | PI 7804 Penrose Clay Supplies | 310.00 | 7,330.00 Dr | |
| 19 Jul | PCN 118 Penrose Clay Supplies | 60.00 | 7,270.00 Dr | |
| 26 Jul | PI 7821 Penrose Clay Supplies | 425.00 | ? |
Task 2Following the running balance2 questions
You find the mistake in a table and pick the right answer.
Task 3Finding a cost in the wrong account3 questions
You find the mistake in a table, write a journal entry and work out a figure.