The ledger is the book which shows us the status of every part of our business. It is the most important book that we keep, and, consequently, it should be kept with great care. Every transaction, no matter how small, sooner or later finds its way to the ledger, although it will not be given the dignity of a line to itself. The ledger is, of course, kept on the double entry system.
Make-up.
There are several stock forms for ledger sheets, that shown as Form 30, in Fig. 30, being one of the best, as the center balance column saves much space. Perhaps the most convenient size is 11¼ × 11⅞ inches, which gives about the right amount of room in all columns. These sheets, printed and ruled as shown, cost $12.00 per thousand, retail. Leather tabbed indices cost $1.65 per set and a high grade ledger binder costs $12.00, although a cheaper type, known as a “transfer” can be obtained for a price as low as $2.75, but it would not give the service and satisfaction of the regular type of ledger. In our system, a ledger with a 1¼ inch back should prove of ample size.
Figure 30, (Reduced in size)
Live accounts only should be kept in the ledger; as soon as an account has been closed out, the pages containing same should be taken out and placed in a ledger transfer binder. The same procedure should be followed with the filled pages of live accounts just as soon as there becomes little chance of their being consulted frequently.
Ledger Accounts.
As has been previously described, our method of handling our charge accounts has rendered it unnecessary for us to keep a private ledger account with each of our charge customers. To do so would be merely to repeat information which we already possess. Also, our Purchase Record has obviated the necessity of a separate ledger account with each of our creditors, for the same reason.
Having no private ledger accounts, it follows that this book then becomes a “General Ledger”, holding only general accounts, such as Bills Payable, etc.