Assets Ledger account balancing | Ledger

Assets Ledger account are those accounts that are related to assets of the business. Assets mean something valuable that a business owns and get benefits from it in the future or has use of it in generating income.

Steps of closing assets Ledger account: –

It is also known as the Closing of assets 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 the larger side which we get after subtracting it from the shorter side on the shorter side of the ledger account.

Note: –

Assets ledger account always has a “Debit balance”
Assets Ledger account balance will always carry forward to the next financial year.

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

We will show only transactions related to the particular Asset account

Illustration:

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

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Date	Transaction	Amount
01/01/18	Debit balance in the Bank a/c	300,000
08/01/18	Purchase goods from Pawan and paid with a cheque	200,000
22/01/18	Sold goods to Shallu and she paid with a cheque	175,000
31/01/18	Salary paid to Employees	50,000

Solution:

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

Bank A/c

Table of Contents

Steps of closing assets Ledger account: –

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

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/01/18	To Balance B/d		300,000	08/01/18	By Purchase a/c		200,000
22/01/18	To Sale a/c		175,000	31/01/18	By Salary a/c		50,000

Note: – if you don’t know how to post the transactions in the ledger account please click on this link ledger.

Now, we will do it step by step

1st Step: Totaling both sides.

we got Total of the Debit side is equal to 475,000/-

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and

The total of the Credit side is equal to 250,000/-

2nd Step: Writes the total of the largest side on both sides. So, that is 475,000/-

Bank A/c

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/01/18	To Balance B/d		300,000	08/01/18	By Purchase a/c		200,000
22/01/18	To Sale a/c		175,000	31/01/18	By Salary a/c		50,000

			475,000				475,000

3rd Step: Subtract the shorter side total from the larger side total.

Total of the debit side(Largest side) subtracted from the credit side total(shortest)

we got 475000 – 250000 = 225,000/-

4th Step: Now, Write a balanced amount of the larger side which we get after subtracting it from the shorter side on the shorter side of the ledger account as shown below.

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Bank A/c

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/01/18	To Balance B/d		300,000	08/01/18	By Purchase a/c		200,000
22/01/18	To Sale a/c		175,000	31/01/18	By Salary a/c		50,000
				31/01/18	By Balance c/d (B. Fig.)		225,000
			475,000				475,000

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Steps of closing assets Ledger account: –

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

Illustration:

Solution:

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