Zero Balance Ledger Account
A ledger account usually has space for posting entries for the entire year. To post an entry for a new month, enter the month in the date column.
After all the entries are posted in the ledger, the balance is adjusted based on the debit and credit of each transaction. Sometimes, the ledger account may not have any debit or credit balance after the adjustment. This is called a zero balance ledger account.
Example:
On January 12th, Accounts Receivable shows a debit balance of $200. On January 27th, the Accounts Receivable received cash, balancing the account back to zero. Therefore, on that date, the balance column shows neither a debit nor a credit balance. A zero is shown by a dash in the normal balance side column.