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    LEDGER

    Uploaded by

    Kul Deep
    - Ledger posting is the process of recording individual transactions in separate accounts in the ledger. It involves debiting and crediting accounts based on journal entries. - Key steps are to prepare journal entries, set up accounts in the ledger, debit items to the left side of accounts and credit items to the right side of accounts. - Examples show setting up accounts for various transactions like purchases, sales, expenses, and adjusting entries. Debit and credit balances are maintained to keep ledger in balance.

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    LEDGER

    Uploaded by

    Kul Deep
    1K views10 pages
    - Ledger posting is the process of recording individual transactions in separate accounts in the ledger. It involves debiting and crediting accounts based on journal entries. - Key steps are to prepare journal entries, set up accounts in the ledger, debit items to the left side of accounts and credit items to the right side of accounts. - Examples show setting up accounts for various transactions like purchases, sales, expenses, and adjusting entries. Debit and credit balances are maintained to keep ledger in balance.

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    - Ledger posting is the process of recording individual transactions in separate accounts in the ledger. It involves debiting and crediting accounts based on journal entries. - Key steps are to prepare journal entries, set up accounts in the ledger, debit items to the left side of accounts and credit items to the right side of accounts. - Examples show setting up accounts for various transactions like purchases, sales, expenses, and adjusting entries. Debit and credit balances are maintained to keep ledger in balance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views10 pages

    LEDGER

    Uploaded by

    Kul Deep
    - Ledger posting is the process of recording individual transactions in separate accounts in the ledger. It involves debiting and crediting accounts based on journal entries. - Key steps are to prepare journal entries, set up accounts in the ledger, debit items to the left side of accounts and credit items to the right side of accounts. - Examples show setting up accounts for various transactions like purchases, sales, expenses, and adjusting entries. Debit and credit balances are maintained to keep ledger in balance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 10

    LEDGER

    Ledger posting is a process where each and every item


    is accounted separately. For Example: Salary A/c,
    Wages A/c, Discount Allowed A/c, Discount Received
    A/c, Ram, Shyam, Purchases A/c etc.
    Dr. Name of Account Cr.
    Date Particulars J.F. Amount Date Particulars J.F. Amount
    (Rs.) (Rs.)
    To…………………………………. By ………………………………

    Steps in Ledger Posting:


    1. Give Journal Entry.
    2. Prepared the Ledger based on the requirement of
    accounts.
    3. The item Debited > Go to the Dr. side of its Account
    >Write
    “To (Name of the item(s) in the Credit Side)
    4. The item Credited > Go to the Cr. Side of its Account
    > Write
    “ By (Name of the item(s) in the Dr. side)
    Jan. 5 Bought Furniture for office use by cheque
    Rs.18,000.
    Furniture A/c Dr. 18,000
    To Bank A/c 18,000
    (Being furniture purchased)

    Dr. Furniture A/c Cr.


    Date Particulars J.F. Amount Date Particulars J.F. Amount
    (Rs.) (Rs.)
    2020
    Jan.5 To Bank A/c 18,000

    Dr. Bank A/c Cr.


    Date Particulars J.F. Amount Date Particulars J. Amount
    (Rs.) F. (Rs.)
    2020
    Jan.5 By Furniture A/c 18,000

    Jan.6 Bought a Computer and a Type-writer of Rs.15,000 and Rs.3,000


    respectively.
    Computer A/c Dr.15,000
    Type-writer A/c Dr. 3,000
    To Cash A/c 18,000
    (Being Computer and type-writer purchased)
    Dr. Computer A/c Cr.
    Date Particulars J.F. Amount Date Particulars J.F. Amount
    (Rs.) (Rs.)
    2020
    Jan.6 To Cash A/c 15,000

    Dr. Type-Writer A/c Cr.


    Date Particulars J.F. Amount Date Particulars J.F. Amount
    (Rs.) (Rs.)
    2020
    Jan.6 To Cash A/c 3,000

    Dr. Cash A/c Cr.


    Date Particulars J.F. Amount Date Particulars J. Amount
    (Rs.) F. (Rs.)
    2020
    Jan.6 By Computer A/c 15,000
    By Type-writer A/c 3,000

    Jan.21 Goods Rs. 1,000 stolen from go-down and Cash Rs.5,000 stolen from
    shop.
    Loss by Theft A/c Dr. 6,000
    To Purchases A/c 1,000
    To Cash A/c 5,000
    (Being goods and cash stolen)
    Dr. Loss by Theft A/c Cr.
    Date Particulars J. Amount Date Particulars J. Amount
    F. (Rs.) F. (Rs.)
    2020
    Jan.21 To Purchases 1,000
    A/c
    To Cash A/c 5,000

    Dr. Purchases A/c Cr.


    Date Particulars J. Amount Date Particulars J. Amount
    F. (Rs.) F. (Rs.)
    2020
    Jan.21 By Loss by 1,000
    Theft A/c

    Dr. Cash A/c Cr.


    Date Particulars J. Amount Date Particulars J. Amount
    F. (Rs.) F. (Rs.)
    2020
    Jan.21 By Loss by 5,000
    Theft A/c

    2nd Day on Ledger


    Jan 1. Started business with Cash Rs. 1,00,000; Building Rs. 5,00,000; Goods
    Rs. 50,000 and Furniture Rs.50,000.
    Cash A/c Dr. 1,00,000
    Building A/c Dr. 5,00,000
    Purchases A/c Dr. 50,000
    Furniture A/c Dr. 50,000
    To Capital A/c 7,00,000
    Dr. Cash A/c Cr.

    Date Particulars J. Amount Date Particulars J. Amount


    F. (Rs.) F. (Rs.)
    2020 2020
    Jan.1 To Capital A/c 1,00,000 Jan.31 By Balance c/d 1,08,550
    24 To Sales A/c 8,550

    1,08,550 1,08,550
    2020
    Feb.1 To Balance b/d 1,08,550

    Dr. Building A/c Cr.

    Date Particulars J. Amount Date Particulars J. Amount


    F. (Rs.) F. (Rs.)
    2020 2020
    Jan.1 To Capital A/c 50,000 Jan.22 By Loss by Fire 5,000
    A/c

    Dr. Purchases A/c Cr.

    Date Particulars J. Amount Date Particulars J. Amount


    F. (Rs.) F. (Rs.)
    2020 2020
    Jan.1 To Capital A/c 50,000
    Dr. Furniture A/c Cr.

    Date Particulars J. Amount Date Particulars J. Amount


    F. (Rs.) F. (Rs.)
    2020 2020
    Jan.1 To Capital A/c 5,00,000

    Dr. Capital A/c Cr.

    Date Particulars J. Amount Date Particulars J. Amount


    F. (Rs.) F. (Rs.)
    2020
    Jan.1 By Cash A/c 1,00,000
    By Building A/c 5,00,000
    By Purchases A/c 50,000
    By Furniture A/c 50,000
    Jan 22. Goods worth Rs. 5,000 destroyed by fire. Insurance co. admitted a
    claim of 60%.
    1st Part: Loss by Fire A/c Dr. 5,000
    To Purchases A/c 5,000
    (Being goods destroyed by fire)
    2nd Part: Insurance Co. A/c Dr. 3,000
    Profit and Loss A/c Dr. 2,000
    To Loss by Fire A/c 5,000
    ( Being insurance co. admitted the claim)

    Dr. Loss by Fire A/c Cr.


    Date Particulars J. Amount Date Particulars J. Amount
    F. (Rs.) F. (Rs.)
    2020 2020
    Jan.22 To Purchases A/c 5,000 Jan.22 By Insurance Co. 3,000
    A/c
    By Profit and
    2,000
    Loss A/c

    5,000 5,000
    Dr. Insurance Co. A/c Cr.

    Date Particulars J. Amount Date Particulars J. Amount


    F. (Rs.) F. (Rs.)
    2020 2020
    Jan.22 To Loss by Fire 3,000 Jan.31 By Balance c/d 3,000
    A/c
    2020
    Feb.1 To Balance b/d 3,000

    Dr. Profit and Loss A/c Cr.


    Date Particulars J. Amount Date Particulars J. Amount
    F. (Rs.) F. (Rs.)
    2020 2020
    Jan.22 To Loss by Fire 2,000
    A/c

    Jan.24 Sold goods to Tanu for Rs.40,000, allowed her a Trade Discount of
    5% and a Cash Discount of 10%. She paid 1/4th of the amount in cash
    instantly.
    Cash A/c Dr. 8,550
    Discount Allowed A/c Dr. 950
    Tanu Dr. 28,500
    To Sales A/c 38,000
    (Being goods sold at 5% Trade Discount and 10% Cash Discount, ¼ of the
    payment received)
    Dr. Discount Allowed A/c Cr.
    Date Particulars J. Amount Date Particulars J. Amount
    F. (Rs.) F. (Rs.)
    2020 2020
    Jan.24 To Sales A/c 950

    Dr. Tanu Cr.

    Date Particulars J. Amount Date Particulars J. Amount


    F. (Rs.) F. (Rs.)
    2020 2020
    Jan.24 To Sales A/c 28,500 Jan.31 By Balance c/d 28,500
    2020
    Feb. 1 To Balance b/d 28,500

    Dr. Sales A/c Cr.


    Date Particulars J. Amount Date Particulars J. Amount
    F. (Rs.) F. (Rs.)
    2020 2020
    Jan.31 To Balance c/d 38,000* Jan.24 By Cash A/c 8,550
    By Discount
    Allowed A/c
    950
    By Tanu
    28,500
    38,000 38,000
    2020
    Feb. 1 By Balance b/d 38,000*
    Steps for Balancing of Accounts:
    1. Find the total of both the sides. Dr. and Cr. (in rough)
    2. Write the higher side total on both the sides.
    3. Subtract the lower total and find the balance and write
    “To/By Balance c/d”

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