LEDGER

ACCOUNTING: Accounting is an activity concerned with the recording of financial data relating to business operations in a significant and orderly manner. Rules of different accounts: PERSONAL ACCOUNT: “Debit the receiver and credit the giver” REAL ACCOUNT: “Debit what comes in and credit what goes out” NOMINAL ACCOUNT: “Debit all expenses and losses and credit all incomes and gains” LEDGER: Ledger is a book which contains various accounts. In other words , ledger is a set of accounts . It contains all accounts of business enterprise whether real, nominal, or personal. RULES REGARDING THE POSTING: The following rules should be observed while posting the transactions in the ledger from the journal. 1. Separate accounts should be opened in the ledger for posting transactions relating to different accounts recorded in the journal. E.g.: separate accounts may be opened for sales, cash account, purchases etc… 2. The concerned account which has been debited in the ledger. However a reference should be made of the other account which has been credited in the journal. 3. The concerned account which has been credited in the journal should also be credited in the ledger, but reference should be of given account, which has been debited in the journal.

JOURNALISE THE FOLLOWING TRANSACTIONS AND POST THEM IN LEDGER

DATE

PARTICULARS

AMOUNT IN RS 40000 8000 7000 1000 500 14000 6000

01/01/2000 Started business with cash 02/01/2000 Purchased goods for cash 03/01/2000 Sold goods for cash 05/01/2000 Received cash from murthy 18/01/2000 Cash paid to murthy 21/01/2000 Purchased goods from kiran 31/01/2000 Goods sold to kareem

JOURNAL OF MR.PRABHU DATE PARTICULARS LF DEBIT IN CREDIT IN RUPEES 40000 8000 8000 7000 7000 1000 1000 500 500 14000 14000 6000 6000

01/01/2000 .cash a/c …………………….Dr To Prabhu’s capital a/c 02/01/2000 Purchases a/c…………………Dr To cash a/c 03/01/2000 Cash a/c ………………………Dr To sales a/c 05/01/2000 Cash a/c ……………………..Dr To Murthy a/c 18/01/2000 Murthy a/c…………………..Dr To cash a/c 21/01/2000 Purchases a/c…………………Dr To Kiran a/c 31/01/2000 Karim a/c……………………..Dr To sales a/c

NO RUPEES 40000

POST THEM INTO LEDGER Dr DATE PARTICULA RS 01/01/00 03/01/00 05/01/00 To prabhu’s capital a/c To sales a/c To cash a/c 7000 1000 18/01/00 31/01/00 JF N O 40000 02/01/00 By purchases a/c By murthy a/c By balance c/d 500 39500 CASH A/C DEBIT IN DATE RS PARTICULAR JF S N O 8000 Cr CREDI T IN RS

48000 01/02/00 To balance b/d 39500

48000

Dr DATE 31/01/00 PARTICULA RS To balance c/d

PRABHU’S CAPITAL A/C JF N O DEBI T IN RS 40000 DATE 01/01/00 S By cash a/c JF PARTICULAR N O

Cr CREDI T IN RS 40000 40000

40000

01/02/00

By balance b/d

40000

Dr DATE RS 02/01/00 21/01/00 01/02/00

PURCHASES A/C PARTICULA JF N O To cash a/c To kiran a/c To balance b/d DEBI T IN RS 8000 14000 22000 31/01/00 DATE PARTICULAR JF S By balance c/d N O

Cr CREDI T IN RS 22000

22000

SALES A/C DATE PARTICULA RS 31/01/00 To balance c/d JF N O DEBI T IN RS 13000 03/01/00 31/01/00 01/02/00 13000 DATE PARTICULAR JF S by cash a/c by karim a/c to balance b/d N O 7000 6000 13000 CREDI T IN RS

Dr DATE PARTICULAR S 18/01/.00 31/01/00 To cash a/c To balance c/d

MURTHY A/C JF N O DEBI T IN RS 500 500 1000 DATE PARTICULAR S 05/01/00 By cash a/c 01/02/00 By balance b/d
JF N O

Cr CREDI T IN RS 1000

1000

Dr DATE PARTICULA RS 31/01/00 To balance c/d JF N O

KIRAN A/C DEBI T IN RS 14000 21/01/00 01/02/00 14000 DATE PARTICULAR JF S By purchases a/c By balance b/d N O

Cr CREDI T IN RS 14000

14000

Dr DATE PARTICULA RS 31/01/00 01/02/00 To sales a/c To balance b/d

KARIM A/C JF N O DEBI T IN RS 6000 6000 31/01/00 DATE PARTICULAR JF S By balance c/d N O

Cr CREDI T IN RS 6000 6000

CONCLUSION: Thus we have to post the following transactions from journal to Ledger.

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