How to Record a Property Settlement Statement in a General Ledger

Anytime a financial transaction occurs, it's a good idea to keep a record of it. In particular, a property sale or settlement requires taking very specific notes on cash exchanging hands. Without keeping track of these expenditures and credits, it will be much more difficult to keep a handle on your finances and determine final overall costs. Luckily a general ledger is easy to use and will help immensely with this. You don't need a big fancy one; a small notebook in your pocket will work just fine, or a larger notebook on your desk.

Decide which ledger category your settlement falls into. Typically, ledger categories include assets, liabilities, owner's equity, revenue and expenses. Yours might vary. Use the proper ledger sheet for recording the property settlement.

For each individual charge, record its details and how much it cost (debit) or earned (credit). Each ledger sheet should have five columns: date, transaction description, debits, credits and balance.

 

Use the proper starting balance and either subtract (debit) or add (credit) to come up with a new balance for each item. Double-check your math. A small mistake can throw off the entire ledger.

 

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About the Author

Shannon Johnson has been a freelance writer since 2008, specializing in health and organic and green-living topics. She practiced law for five years before moving on to work in higher education. She writes about what she lives on a daily basis.