Classification of Ledger Accounts
Ledger Accounts can be classified into two categories.
Ledger account with an opening balance of zero (Zero-opening Ledger Account):
The opening balance of a ledger account will be zero at the beginning of each accounting period. Examples of such accounts include revenue accounts, expenses accounts, and owner’s drawing accounts.
Ledger account with an opening balance:
In this type of account, the closing balance of the previous year’s account is carried forward to the next year’s opening balance. Examples of such accounts include assets accounts, capital accounts, and accounts payable.