More often than not, as an accounting professional you need to prepare Ledgers. You may be using the application software which might have been set up for your organization specifically. In this article we will focus on preparing a ledger using Microsoft excel application.
What if you need to prepare ledgers or a statement of accounts separately using Microsoft Excel? In case you are supposed to prepare various ledgers within a short span of time, then, how do you do that?
If you have a reasonable knowledge of Microsoft Excel and its formulas and functions, then, you can perform this assigned task quickly as well as efficiently.
However, if you think you need some help in that, then this article might be of some help and assistance for you. Below are the steps that you may follow to prepare a ledger successfully.
Step One: You need to identify the statement of account or a ledger you are going to prepare belongs to which Components of balance sheet or Income statement, so that you can assign the debit and credit and balance and the formula in a specified cell of MS Excel accordingly.
Step Two: Give Column headings starting from A5 to F5 in this way, Date, Reference Number, Narration, Debits, Credits and Balance. (Note: These are the columns that are used generally)
Step Three: Write “Opening Balance“ in C6 and provide opening balances under F6 - with debits and credits accordingly in D6 an E6. Type or copy this formula in the cell F7 without brackets [=F6+D7-E7]. Now that the formula is ready to be copied downward to other cells of the same column, do it accordingly. You can copy and paste the formula in accordance with the required number of rows.
Step Four: Enter the corresponding details accordingly in the specified columns.You will see that each row will provide the corresponding balance.
Finally, at the topmost column, starting from A1 to A3-with required range, you can write name of your company, account name, month and year of Ledger.
You can use gridlines to make your ledger appear good. You can also adjust the column widths as per your requirement. This way, you will have prepared the Ledger or Statement of Account successfully.
Accounting is a multifaceted discipline of identifying, measuring and communicating of an organization’s economic health. The discipline of accounting is best understood when one has strong conceptual understanding of other interconnected disciplines.
Basic economics requires conceptual clarity. Most economic decisions at the level of individual economic agents are a function of value and cost of an economic good for them.
Microsoft Excel has a great application in Financial Accounting. A lot of tasks can be accomplished by using Excel efficiently.