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”