Professional Documents
Culture Documents
Capital
70000
50000
Anju Manju
17. June 1, 2004 – Anju contributed capital Rs. 50,000
Manju contributed capital Rs. 70,000
Journal
Jualy 1, 2004 – Ajay contributed capital – Cash Rs.
90,000, Furniture Rs. 20,000
Vijay contributed capital – Cash Rs. 50,000
Stock Rs. 70,000
Ajay Vijay
cash
Furniture
July 1, 2004 – Ajay contributed capital – Cash Rs. 90,000, Furniture Rs. 20,000
Vijay contributed capital – Cash Rs. 50,000, Stock Rs. 70,000
Journal
July 13, 2003 – Received cash Rs.24,700 from
Shanthi in full settlement of her account of
Rs.25,000.
July 13, 2003 – Received cash Rs.24,700 from Shanthi in full settlement of her
account of Rs.25,000.
20. July 14, 2003 – Paid cash to Thenmozhi s.14,500, in full settlement
of her account of Rs.15,000.
21. Jamuna who owed us Rs.10,000 is declared insolvent and
25% in a rupee is received from her on 15th July, 2003.
Insolvent:
Unable to meet debts or
discharge liabilities
What is bad debts?
The term bad debts usually refers to accounts receivable (or
trade accounts receivable) that will not be collected. However,
bad debts can also refer to notes receivable that will not be
collected.
The bad debts associated with accounts receivable is reported
on the income statement as Bad Debts Expense or Uncollectible
Accounts Expense.
21. Jamuna who owed us Rs.10,000 is declared insolvent and
25% in a rupee is received from her on 15th July, 2003.
Journal
Received cash for a Bad debt written off last year
Rs.7,500 on 18th January, 2004.
Insolvent Solvent
Received cash for a Bad debt written off last year
Rs.7,500 on 18th January, 2004.
Journal
Ledger posting
Ledger
• A Ledger is a book which contains all the accounts which
are first entered in journal.
Dr. Cr.
AED AED
• ii. The name of the account is mentioned in the top (middle) of the account.
• iv. The word ‘To’ is used before the accounts which appear on the debit side of an account in
the particulars column. Similarly, the word ‘By’ is used before the accounts which appear on
the credit side of an account in the particulars column.
• v. The name of the other account which is affected by the transaction is written either in the
debit side or credit side in the particulars column.
• vi. The page number of the Journal or Subsidiary Book from where that particular entry is
transferred, is entered in the Journal Folio (J.F) column.
• vii. The amount pertaining to this account is entered in the amount column.
Posting
The process of transferring the
entries recorded in the journal or subsidiary
books to the respective accounts opened in
the ledger is called Posting.
Procedure of posting
I. Procedure of posting for an Account which has been debited in the journal entry.
Step 1 →Locate in the ledger, the account to be debited and enter the date of the
transaction in the date column on the debit side.
Step 2 →Record the name of the account credited in the Journal in the particulars
column on the debit side as “To..... (name of the account credited)”.
Step 3 →Record the page number of the Journal in the J.F column on the debit side and
in the Journal, write the page number of the ledger on which a particular account
appears in the L.F. column.
Step 4 →Enter the relevant amount in the amount column on the debit side.
Procedure of posting
II. Procedure of posting for an Account which has been credited in the journal entry.
Step 1 →Locate in the ledger the account to be credited and enter the date of the
transaction in the date column on the credit side.
Step 2 → Record the name of the account debited in the Journal in the particulars column
on the credit side as “By...... (name of the account debited)”
Step 3 → Record the page number of the Journal in the J.F column on the credit side and
in the Journal, write the page number of the ledger on which a particular account
appears in the L.F. column.
Step 4 → Enter the relevant amount in the amount column on the credit side.
Example of Ledger and Posting
Journal
Mr. Ram started business with cash
Rs.5,00,000 on 1st June 2003.
Ram,s Capital
Cash Account
Account
For ledger posting draw 2 Ledgers
Cash Account
Ram,s Capital
Account
Name of Account
Dr. Cr.
Date Particulars JF Amount Date Particulars JF Amount
AED AED
Year Accounts name Year Accounts
Month Month name
Date Date
Name of Account
Dr. Cr.
Date Particulars JF Amount Date Particulars JF Amount
AED AED
Year Accounts name Year Accounts
Month Month name
Date Date
Write the name of Accounts at the
top of each ledger.
Cash Account
Ram,s Capital
Account
Cash Account
Dr. Cr.
Date Particulars JF Amount Date Particulars JF Amount
AED AED
Year Accounts name Year Accounts
Month Month name
Date Date
AED AED
Year Accounts name Year Accounts
Month Month name
Date Date
Input the dates
Cash Account
Dr. Cr.
Date Particulars JF Amount Date Particulars JF Amount
AED AED
AED AED
AED AED
AED AED
500,000
Adjust debit credit with
AED AED
500,000 500,000
Carry forward the adjusted balance
AED AED
500,000 500,000
AED AED
500,000
500,000
Journal