Fillable Form Accounts Receivable Ledger

What is an Accounts Receivable Ledger?

An Accounts Receivable Ledger, or also referred to as the Accounts Receivable Subsidiary Ledger or Customer Ledger, is a book or document used to record the transactions and the payment history of an account or client at the end of a certain period.

How to fill out an Accounts Receivable Ledger?

To fill out an Accounts Receivable Ledger, you must provide the following information:

Column 1. Number

Enter the number you assigned to your client.

Column 2. Date

Enter the date you expect your client to pay using the format: Month-Day-Year.

Column 3. Name

Enter the full legal name of your client.

Column 4. Account Number

Enter the account number of your client.

Column 5. Debit

Enter the amount of debit your client has. This is the amount that may increase an expense or asset account, or decrease an equity or liability account.

Column 6. Credit

Enter the amount of credit your client has. This is the amount that may decrease an assets or expenses account, or increase an equity, liability, or revenue account.

Column 7. Balance

Enter the ending balance of your client. This is the amount of unpaid accounts receivable.

Can I make my own Accounts Receivable Ledger?

Yes, you can make your own Accounts Receivable Ledger.

To create a complete Accounts Receivable Ledger, create 7 columns using any kind of spreadsheet editor. You must then provide the following information about your clients and their accounts using these 7 columns:

• Assigned client number
• Date of due payment
• Full legal name of client
• Client’s account number
• Debit
• Credit
• Balance

What does an Accounts Receivable Ledger Contain?

A complete Accounts Receivable Ledger must contain the following information about your clients and their accounts:

• Assigned client number
• Date of due payment
• Full legal name of client
• Client’s account number
• Debit
• Credit
• Balance

Why is it necessary to have an Accounts Receivable Ledger?

An Accounts Receivable Ledger is important for several reasons.

By utilizing an Accounts Receivable Ledger, you will be able to keep track of the status of all your clients’ accounts and the progress of their payments.

You will be able to quickly see how much a certain client owes and what their recent payments and transactions have been.

An Accounts Receivable Ledger will help you and your business perform in a much more organized and efficient manner because of the detailed information it has about your client’s account status and payment history.

Other advantages of utilizing an Accounts Receivable Ledger include the following, but are not limited to:

• Being able to monitor your clients’ past-due obligations
• Being able to organize all of your revenues
• Being able to prevent fraud within the business
• Being able to gain more insight into your clients’ demographics based on your business’s profitability
• Being able to check your clients’ payment status at any given time

Is an Accounts Receivable Ledger required in a business?

Technically, an Accounts Receivable Ledger is not required to run a business, especially if you are running a small business.

Most individuals and entities running medium scale and large scale businesses utilize Accounts Receivables Ledgers, but regardless of the size of your business, using an Accounts Receivable Ledger would have a positive effect on your business as a whole.

A business of any type or size will benefit greatly if you decide to utilize an Accounts Receivables Ledger because of the following reasons:

1. By using an Accounts Receivable Ledger, you will be able to easily access detailed information about your clients, their accounts, their payment history and progress, their outstanding balances, and other related details.
2. Having an Accounts Receivable Ledger will help you acquire data about your client’s credit balance much more quickly and efficiently.
3. If you decide to use an Accounts Receivable Ledger, you will be able to prevent internal fraud and embezzlement much more effectively. By doing this, you will be able to restrict access to the Accounts Receivable Ledger, making it almost impossible for other employees not included in this aspect of the business to tamper with the important data the ledger holds. In case fraud or embezzlement really does happen, it will be easy to pinpoint the person responsible for the crime.
4. By using an Accounts Receivable Ledger, you will be able to manage a number of projects at the same time.
5. Utilizing an Accounts Receivable Ledger will help you classify your clients easily since it gives you access to each of their information regarding their balance.
6. Using an Accounts Receivable Ledger will help you understand what your target market or demographic really is. Maintaining this ledger will help you see which clients are able to pay their balances on time and those who have past-due obligations.

Who should maintain an Accounts Receivable Ledger?

Assigning at least one person to handle and take responsibility for the Accounts Receivable Ledger would be the best way to ensure the ledger’s proper maintenance.

What is the difference between a journal and a ledger?

Both journals and ledgers record business transactions.

A journal is a book or document where all business transactions are recorded immediately right after they take place.

On the other hand, a ledger is a book or document where all business transactions are transferred to.

Is an Accounts Receivable Ledger the same as a Sales Ledger?

A Sales Ledger is where you record your sales. It is also where you can see information about the money you have received and how much your client still owes you.

On the other hand, an Accounts Receivable Ledger is a sub-ledger. This document is different from a Sales Ledger.

An Accounts Receivable Ledger contains credit sales made by your business. It also contains detailed information about your clients’ account status and payment history.

When should I enter accounts into the Accounts Receivable Ledger?

Accounts should be entered into the Accounts Receivable Ledger before the end of an accounting period, specifically before closing the books and completing all the financial statements for the period.