1. Ledger  The book which contains accounts is known as the Ledger.  Transactions relating to a particular account for a given period are brought together and finally they are recorded at one place in a Ledger.  For example, cash transactions like Cash Sales, Cash Purchases, Cash Expenses etc. are put in one place in the Ledger under the Cash Account

2.  Each Ledger account is divided into two equal parts :  Debit side  Credit side  The left-hand side is known as the Debit side and the right hand side as the Credit side. On each side there are columns for Date, Particulars, Journal Folio and Amount. The format of a Ledger Account is as follows

3. Format of Ledger SPECIMEN OF A LEDGER ACCOUNTCr. DateParticularsFolioAmount Rs. P DateParticularsFolioAmount Rs. P

4. Balance c/d and Balance b/d  Balance c/d (Balance carried down) Balance carried down is usually the balancing figure in any account. Before closing an account both the sides (Dr. and Cr.) of that account should tally. i.e.,  The amount that is added to make the shorter side of any account equal to the other side is called balance carried down. It is in fact the closing balance of any account.  For the first date of the next month this amount is again brought down (b/d) which basically shows the Dr. or Cr. Balance of the account.