A ledger account is an account in a double-entry accounting system. Common examples include asset, liability, expense, and revenue accounts. Each ledger account belongs to a ledger and can only have entries with other accounts belonging to the same ledger. This guide will outline the steps to create a ledger account using the Modern Treasury dashboard.
To create a ledger account
- Login to Modern Treasury
- Navigate to the Ledgers section
- Select the desired ledger object
- From the 'Actions' dropdown menu in the upper right-hand corner, click 'Create Account'
- Title the Ledger Account and select the Currency
- Depending on the type of account, select whether this will be a debit normal or credit normal account
- Fill out relevant additional information (description, category, and metadata are optional fields)
- Click 'Create' to finish creating the Ledger Account
Frequently Asked Questions
How should I choose between debit normal or credit normal?
If this is a credit normal account, then credit transactions will increase its balance, and debit transactions will decrease its balance. Accounting standards will dictate whether an account is credit or debit normal based on its type (asset, liability, expense, revenue, etc.).
What is a Category?
Categories are groupings of Ledger Accounts. Its balance is equal to the sum of the balances of all contained accounts. Ledger Account Categories can also contain other categories, which enables the creation of nested hierarchies. More information on categories can be found in our API docs.