How to keep a simple shop ledger

One page per party

A ledger (khata) is simply a record of every transaction with one person or business. Give each customer and each supplier their own page. On that page, write every bill and every payment, in date order, with a running balance at the end of each line.

Two columns are enough: money to receive (they owe you) and money to pay (you owe them). The balance tells you, at a glance, which way the money has to move.

What to write on every line

• Date.
• What happened — “Bill GL/26-27/0015”, “Cash received”, “UPI paid”, “Goods returned”.
• Reference — the bill number, UPI reference or cheque number.
• Amount in the right column.
• Balance after this line.

A sample page

Here is one customer's page for a month (sample figures):

Anyone can read this page and see exactly how the balance was reached — that is the whole goal.

Five habits that keep it clean

1. Write it the same day. Entries made from memory at the end of the week are where mistakes come from.
2. Link every entry to a paper. A bill, a receipt or a payment message — so any entry can be checked later.
3. Never overwrite. If something is wrong, add a correcting entry. Crossed-out numbers create doubt.
4. Match with the party every month. Send each party their balance and ask them to confirm. Differences are easy to find when they are one month old, and very hard after a year.
5. Keep a copy. A notebook can be lost or get wet. Keep a photo, a printout or a digital copy.

Returns and discounts

When goods come back or you give a discount after billing, record it as a separate entry against the original bill. If you are registered under GST, the proper document for reducing a bill's value is a credit note, which carries its own number and date.

How long to keep records

If you are registered under GST, the law requires you to keep your books of account and records until 72 months (six years) from the due date of the annual return for that year. Longer if there is an appeal or proceeding pending. Plan your storage — paper or digital — for at least that long.

A record, not a lending service

A ledger only records what has already been agreed between you and your party. It does not change the terms of any deal. Keeping it clear and up to date is simply good business.

Official sources

• CBIC — CGST Act, 2017 (Section 36: period of retention of accounts)
• CBIC — FAQs on GST

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