Expenses Ledger account: -

Expenses Ledger account means those specific ledger accounts which are related to that amount which is paid or due to paid for goods and services which are consumed within the current Financial year. These amounts are known as Expenses.

Expenses Ledger account balancing: -

It is also known as Closing of Expenses Ledger account for the specific account. The closing of ledger accounts is included in the following steps : -

• 1st Step: Totaling both sides.
• 2nd Step: Writes the total of the largest side on both sides.
• 3rd Step: Subtract the shorter side total from the larger side total.
• 4th Step: Now, Write balance amount of larger side which we get after subtracting it from the shorter side on the shorter side of the ledger account.

Now we will explain it further with the help of the following illustration.

We will show only transactions related to the particular expense account

Illustration:

Prepare Freight and Transportation A/c for the Month of Jan-18.

Date	Transaction	Amount
01/01/18	Transportation paid on the purchase of goods from Ram	10,000
09/01/18	Freight paid on the purchase of goods from Arun	5,000
17/01/18	Purchase goods from Raman and Transportation charge paid for	20,000
29/01/18	Purchase goods from Raman and Freight paid for	7,000

Solution:

After posting all the transaction in the journal and then posted it in the ledger we will get ledger account as shown below:

Freight and Transportation A/c

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/01/18	To Cash a/c		10,000
09/01/18	To Cash a/c		5,000
17/01/18	To Cash a/c		20,000
29/01/18	To Cash a/c		7,000

Freight and Transportation A/c