How to Transfer from One Ledger to Another Ledger in Accounting

Sometimes Perform/Format some good from a person and sells Other goods to him. The same person is, therefore, a creditor as well as a debtor of the firm and show his name will appear in the sales ledger as well as in Purchase/bought ledger.

However, the Settlement of such a person Account will be made by deducting the balance office one Account having a small amount of the other having a greater amount.

Thus, for this purpose transfer entry is made in the Journal this transfer will affect the total debtor’s account and total creditors account.

The following Journal Entry will be passed for this purpose:

Personal account (in total creditors account) Dr.

To Personal account (in Total debtors account)

It is to be remembered that if the Debit balance is transferred from the sales ledger to purchase ledger or credit balance is transferred from purchase ledger to the sales ledger. you can also check out Types of Financial Statements.

Thus, the transfer entry to be passed will be the same but if the credit balance is transferred from the sales ledger to purchase ledger or Debit balance is transferred from purchase ledger to Sales Ledger.

The following Journal Entry will be passed for this purpose:

Personal account (in total debtors account) Dr.

To Personal account (in Total Creditors account)

You Are Here Transfer from One Ledger to Another Ledger in accounting.