Example: Method 1 (Cumulative Balance Calculation)

In this example, the AC ledger balance amount for period 3 is 1,120:

From Ledger Accounting Period	Period Ending Rate	Calculation	To Ledger Period Posting	To Ledger Period Ending Balance	To Ledger Cumulative Balance
Beginning Balance	1,000	0.90	1,000 Ã 0.90	900	900
Period 1	100	1.10	(1,000 + 100) Ã 1.10 − 900	310	1,210
Period 2	200	1.05	(1,300 Ã 1.05) − (900 + 310)	155	1,365
Period 3	100	0.80	(1,400 Ã 0.80) − (1,210 + 155)	–245	1,120