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Folio Number

A column is reserved in the books or journals and every account in the ledgers for folio which is always on the immediate left of the amount columns. In this folio column is entered the abbreviation of the name of the other book and the number of the page of that book in which the corresponding entry of the double entry is recorded. The abbreviated name and page number together make up the folio number. The folio number is used to ease cross reference between the books or journals and the accounts in the ledgers.

For example, a cash payment is made to a trade creditor whose account is on page 50 of the purchases ledger, and the cash paid is recorded on page 51 of the cash book. The folio numbers used are as follow:

In the purchases ledger, the folio number entered is CB51
In the cash book, the folio number entered is PL50

A folio number entered in the folio column of a ledger account is an indication that the double-entry records have been made. It makes it easy to trace the source of the entry in the accounts or books. For example, entries in an account can be traced back to the journal entries, and thus the reasons for the postings.

Sales Journal (Page 35)
Date Debtors Inv No. Folio Amount
$
20XX
Aug 12 H Hug 00678 SL14 660
Aug 24 M Mug 00679 SL22 470

 

Sales Ledger

Pg 14

H Hug Account

Date Particulars Folio Amount Date Particulars Folio Amount
$ $
20XX
Aug 12 Sales SJ35 660

 

Pg 22

M Mug Account

Date
Particulars
Folio
Amount

Date
Particulars
Folio
Amount



$




$
20XX








Aug 24
Sales
SJ35
470





Looking at the above sales journal, the folio ‘SL14’ means H Hug’s account can be found on page 14 of the sales ledger while M Mug’s account is on page 22 of the same ledger.

A ‘C’ may also appear in the folio column. This happens when two entries are recorded on the same page of the cash book as shown here:

Cash Book
Date
Particulars
Folio
Cash Bank

Date
Particulars
Folio
Cash Bank



$ $




$ $
20XX




20XX



Nov 2
Sales
GL25
450

Nov 3
Rent
GL22
550
"    4 B Bigman SL12 220 "    7
Bank C 300
"    7
Cash C 300

C = contra. The two entries used the letter ‘C’ in the folio column to indicate banking – the same amount appearing on the same page of the cash book.

Last Updated (Sunday, 12 September 2010 12:03)