A group of organized accounts where the
individual unit is the account. Usually one
ledger account is assigned for each balance
sheet and profit and loss statement account.
Examples include cash, accounts receivable,
accounts payable, equipment, accumulated
depreciation, tax payable, commission
revenue, office supplies, rent, etc.
General Ledger
All financial data of the business can
be found in the general ledger. Entries are
cross-referenced back to the originating
journal so that, if necessary, an entry can
be traced to the original documentation.
Every account in the general ledger has a
separate sheet. Each account has a debit,
credit, or nil balance. Adding up all the
debits and credits should result in equal
totals. The books are then said to be in
balance. At the end of each month, a trial
balance is prepared using the general
ledger. All brokerages maintain a general
ledger as well as subsidiary ledgers. An
example of a subsidiary ledger is the real
estate trust ledger.
Real Estate
Trust Ledger
This ledger chronologically records, for
each transaction, the trust money received
and disbursed indicating:
From where the money was received;
To whom it was disbursed;
The reason for each disbursement;
and
Any unexpended balance.
Procedures concerning real estate trust
ledgers will vary by province including
trade numbering systems, required
information to be entered, methods and
recording of disbursements from the trust,
and supporting journals (if applicable).
Figure A.9 reflects entries for a typical
real estate trust ledger illustrating usual
entries.
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