Income Ledger account balancing | Ledger

Income Ledger account means those specific ledger accounts which are related to that amount which was earned or receivable against goods and services which are earned within the current Financial year. These amounts are known as Income and Gain.

Steps of Closing of Income Ledger account

It is also known as Closing of Income 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 a balanced 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 Income account

Illustration:

Prepare Sale A/c for the Month of Jan-18.

Date	Transaction	Amount
05/01/18	Sold goods to Pawan	200,000
12/01/18	Sold goods to Shallu and she paid with a cheque	75,000
21/01/18	Cash sale	2,000
31/01/18	Sold goods to Puneet	123,000

Solution:

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

Sales A/c

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
				05/01/18	By Pawan a/c		200,000
				12/01/18	By Bank a/c		75,000
				21/01/18	By Cash a/c		2,000
				31/01/18	By Puneet a/c		123,000