01
The Instructions Sheet
Four things to read first, then nine steps and what the workbook does not do.
Ledger Account Format in Excel, with Ageing and the MSME 45-Day Check (2026)
Most ledger formats are a blank T-account. This free Excel builds every customer's and supplier's ledger from one list of entries, ages what is unpaid, and checks micro and small suppliers against the MSMED Act's 15-day and 45-day limits. Updated October 2026.
- Debtor and creditor ledgers from one list of bills, receipts and payments
- A printable ledger account with a running Dr or Cr balance and a balance confirmation
- Ageing, due dates and the year-end check for micro and small suppliers
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Petpooja presents
Ledger Account Format
For traders, distributors and small businesses
45 days
MSME payment ceiling · Excel
2026
What's Inside
Ten sheets from the first entry to a balance your party can confirm
02
The Parties Sheet
Up to 100 customers and suppliers, once each: debtor or creditor, MSME status, Udyam number, credit days agreed in writing and opening balance, plus the RBI Bank Rate.
03
The Entries Sheet
Every bill, receipt, payment and note by date, up to 500 of them. Debit, credit, the due date, what is unpaid and the days overdue work themselves out.
04
The Ledger Account
Pick a party and a period and print the account: opening balance, each entry, a running Dr or Cr balance, and a balance confirmation for the party to sign.
05
The Outstanding Sheet
Every party's balance, unpaid bills by age, what is past due, the MSMED interest estimate and the year-end figures for micro and small suppliers.
06
The Ledger Rules and Four Examples
Eleven provisions, quoted or summarised, and seven months at a made-up distributor with two supplier bills past due on purpose.
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Why This Matters
A supplier's ledger now decides a tax deduction
A ledger lists one party's dealings in date order, with a running balance. For a micro or small supplier with Udyam registration it does one more job: it shows when each bill falls due. Under section 15 of the MSMED Act, 2006, payment is due within 15 days of receiving the goods or services unless a term is agreed in writing, and a written term cannot go past 45 days.
Miss the date and section 16 adds compound interest at three times the RBI Bank Rate, whatever the contract says. Leave the bill unpaid at the year end and section 37(2)(g) of the Income-tax Act, 2025, the old 43B(h), moves the deduction to the year you pay. Paying before you file the return does not bring it back.
In the example, a packaging supplier's bill of ₹42,000 is received on 6 September on 30 days' written terms. A ₹2,000 debit note later, ₹40,000 is still unpaid on 31 October, 25 days past due. The Entries sheet flags it and the Outstanding sheet adds the interest, months before the year closes. Our glossary entry on sundry creditors walks through the same two clocks.
The customer side runs on the same entries. The Outstanding sheet ages every debtor's unpaid bills, which is where our guide to getting accounts receivable paid faster starts.
Sample Preview
What each sheet gives you
Here's a preview of what you'll get inside, sheet by sheet, in the order they open.
Instructions: Four things to read first, the sheets, nine steps and what the workbook does not do.
Parties: Business set-up and the RBI Bank Rate, then each party: name, debtor or creditor, GSTIN, MSME status, Udyam no., credit days in writing, opening balance and a Check column.
Entries: Date, party, entry type, bill or voucher no., received-on date, narration, amount, debit, credit, due date, unpaid, days overdue and the Check column.
Ledger Account: One party's account for a period, with opening and closing balances, a running Dr or Cr balance and a confirmation line.
Outstanding: Balance, unpaid bills at 0-30, 31-60, 61-90 and over 90 days, past due, interest estimate and the year-end figures.
Ledger Rules: Eleven provisions, quoted or summarised, and what each means for your ledger.
Examples: A made-up distributor's seven months: the packaging supplier at ₹40,000 Cr, 25 days past due, and the trader flagged on Parties.
... all 10 sheets in one Excel file, with the formulas locked and the input
cells in yellow.
Key Stats
Three numbers behind every supplier ledger
15 days by default
With no written term, a micro or small supplier is paid within 15 days of receiving the goods or services.
Source: MSMED Act, 2006, s.2(b) and s.15, read 28-Oct-202645 days at most
The longest term a written agreement can set. The workbook caps a longer one at 45.
Source: MSMED Act, 2006, proviso to s.15, read 28-Oct-20263× Bank Rate
Compound interest with monthly rests on a late payment: 17.25% a year, compounded monthly, at the 5.75% Bank Rate shown by the RBI on 27-Oct-2026.
Source: MSMED Act, 2006, s.16; RBI, read 28-Oct-2026
Common Mistakes
7 Ledger Mistakes Small Businesses Make
01
Treating 45 days as the default
Forty-five days is the most a written agreement can give. With nothing in writing, a micro or small supplier is due in 15 days.
02
Counting from the bill date
The clock starts on acceptance, the day the goods or services were received. Enter that date on purchase bills when it differs.
03
Paying before the return to save the deduction
That works for other dues. For micro and small suppliers, section 37(3) leaves them out: unpaid and past due at the year end means deducted in the year you pay.
04
Treating every Udyam certificate the same
A medium enterprise is outside the payment rules, and a trader's Udyam registration is for bank lending only. The Parties sheet flags both.
05
Writing up each party ledger by hand
Copying every bill into a vendor ledger doubles the entries and the mistakes. One list of entries, read by party, cannot disagree with itself.
06
Matching receipts to bills at random
Without a rule, ageing is guesswork. The workbook clears the oldest open bill first, so every party is aged the same way.
07
Never confirming balances
A ledger account sent at the year end and signed back settles differences before they turn into bad debts. The Ledger Account sheet prints one with a confirmation line.
Comparison
A Blank T-Account vs This Workbook
| Aspect | A blank T-account | With this workbook |
|---|---|---|
| Party ledgers | Written up one by one | Built from one list of entries |
| Running balance | Added by hand | Dr or Cr after every entry |
| Ageing | Not shown | 0-30, 31-60, 61-90 and over 90 days |
| MSME due dates | Not known | 15 days, or the written term up to 45 |
| Interest on late payment | Not worked out | Estimated at three times the Bank Rate, monthly rests |
| Year-end deduction | Found at the audit | Shown before the year closes |
Swipe the table sideways to see the full comparison.
A ledger that shows the due date before it passes
Download the free ledger account format and see every party's balance, ageing and MSME due date from one list of entries.
FAQ
Frequently asked questions
What is the format of a ledger account?
A ledger account has the account's name at the top and, for each entry, the date, particulars, voucher or bill number, debit, credit and a running balance marked Dr or Cr. The traditional T-format puts debits on the left and credits on the right; the running-balance format, used by this workbook, keeps one balance column, which is easier to read and to send to the party.
What is the difference between a debtors ledger and a creditors ledger?
A debtors ledger holds the accounts of customers who owe you, so their balances are usually Dr; see sundry debtors. A creditors ledger holds the suppliers you owe, usually Cr. This workbook keeps both from the same list of entries, and the Parties sheet says which each party is.
What is the MSME 45-day payment rule?
Under section 15 of the MSMED Act, 2006, a buyer pays a micro or small supplier by the date agreed in writing, which cannot be more than 45 days from acceptance, or within 15 days of acceptance if nothing is agreed in writing. Section 16 then adds compound interest at three times the RBI Bank Rate. It covers micro and small enterprises with Udyam registration, not medium enterprises. Our working capital calculator shows what 15-day supplier credit does to the cash you need. This page is general guidance, not legal or tax advice.
Is a payment to an MSME after 45 days deductible?
Under section 37(2)(g) of the Income-tax Act, 2025, an amount owed to a micro or small enterprise beyond the section 15 limit is deducted only in the year it is actually paid, and section 37(3) gives it no grace until the return due date. The interest itself is never deductible, under section 23 of the MSMED Act. A bill not yet due at the year end is safest paid by its due date. Check the year-end figures with your accountant before you close the books.
How do I send a balance confirmation to a party?
Pick the party on the Ledger Account sheet, set the period to the year and print it. It ends with the closing balance, a request to confirm it, and a line for the party's signature. For the cash side of the same year, our cash book format works alongside, and the cash flow management template plans the payments ahead.
About Petpooja
Petpooja is India's leading SME business software suite, trusted by 1,50,000+ businesses across restaurants, retail, healthcare, manufacturing, and more. From billing and payroll to task management and procurement Petpooja helps Indian businesses run better, every day.
From the bills you raise to the ledger you send
Petpooja Invoice records every transaction as you bill, with GST worked out on every invoice. For the side you owe, our glossary entry on accounts payable sets out what belongs in it. Ask for a walkthrough of Petpooja Invoice.
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