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Self balancing ledgers

Sam (-) (181 Points)

16 August 2012  


Can anyone explain how self balancing ledger works...in simple language.....

i also can't understand the accounting....

1) as in i have come across a sum where,openingbalance of sundry debtors is (Dr)rs 40000 and (Cr 2000).

and in the Debtors ledger Adjustment A/c in the Genral ledger both the balances are written on the respective sides

how can a A/c have both Cr and Dr balance together

2) in the same account it has ' To GLA A/c ' and ' By GLA A/c'  on both the sides.

3) what is transfer from Debtors Ledger to Creditors Ledger and vice versa (meaning)

plz help


thank you

 5 Replies

Roshan A (Chartered Accountant) (458 Points)
Replied 16 August 2012

1.The Debtors account you talking about is kind of group account & consist of balances of various debtors.Thus Debtor A from whom amt is receivable will be shown in Debit side & say an advance has been received from Debtor B then it will have Credit effect on Debtors(group) account.

3. It may happen that you sell some goods to debtor A & also purchase some other goods from Creditor A.Thus amt is payable & receivable to/from Mr A and so these amts are written off against each other as adjustment:

Creditors account Dr.

      To Debtors account

1 Like

Sam (-) (181 Points)
Replied 16 August 2012




What exactly is GLA A/c?(genral ledger adjustment account)

it is written in place of  SalesA/c etc

Roshan A (Chartered Accountant) (458 Points)
Replied 16 August 2012

Yes its kind of sales account because to make an entry you need to give Dr & Cr(to 2 different accounts) as per rules of double entry system.Thus this is a notional account created with name GLA

Sam (-) (181 Points)
Replied 16 August 2012

Thanks a lot :)

haritha yadala (2 Points)
Replied 31 July 2018

why the same entry why cant

debtors A/C

      To creditors A/C


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