ASSIGNMENT

Course Name: Basics Accounts - 1

Module 3: Ledger
1.From the following transactions Prepare necessary ledger accounts in the books of
Mr. Joshi and balance the same.
2011 1 Started Business with Cash Rs 8,000.
July
  4 Purchased goods on credit from Mr. Desmukh Rs 3,000 at 10% T.D.
  6 Cash Sales Rs 4,000 at 5% C.D.
  10 Paid Rent Rs 900.
  15 Cash Purchases Rs 800.
  20 Credit sales to Mr. Kulkarni Rs 2,700.
  22 Paid cash to Mr. Deshmukh Rs 2,700.
  23 Received cash from Mr. Kulkarni Rs 1,000.
31 Paid wages Rs 500

Dr. Cr.
Amt Amt
Date Particulars JF Date Particular JF
(Rs.) (rs.)
July 2011 Capital A/c 8,000 July 2011
1 Sales A/c 3,800 10 Rent A/c 900
6 Kulkarni A/c 1,000 15 Purchase A/c 800
23 22 Deshmukh A/c 2,700
31 Wages A/c 500
31 Balance c/d 7,900
12,800 12,800

Capital Account
Dr Cr.
Date Particulars JF Amt (Rs.) Date Particular JF Amt
(rs.)
July 2011 Balance c/d 8,000 July 2011 Cash A/c 8,000
31 1
8,000 8,000
 Purchase Account
Dr Cr.
Date Particulars JF Amt (Rs.) Date Particular JF Amt
(rs.)
July 2011 July 2011 Balance c/d 3,500
4 Deshmukh A/c 2,700 31
15 Cash A/c 800
3,500 3, 500

2. What is Ledger? Explain Steps of Recording Ledger?

Ledger is a bound book in which all account are maintained it is recorded

journal and subsidiary books. There is no direct recording in ledger. Ledger
is a secondary book of accounts. Its provides summarized record of various
account at one place. Decision making in business is based on information
available from ledger. It is a main part of books of account.

3. Balancing of Ledger Account

Balancing a general Ledger involves Subtracting the total debits from the
total credits. All debit accounts are meant to be entered one the left side
of ledger while the credit are on the right side. For a general ledger to be
balanced, credits and debits must be equal
4. What are the Rules Regarding Posting?

A general rule of posting is that both credited and debited entries must
be equal when an accountant posts them in the general ledger. The
accountant simply has to enter the same amount from the first entry to
the second entry. You can create two different columns to denote credit
versus debit.

5. What is the Format of Ledger?

This is the standard form of ledger account, which is in “T” form. It is widely used.
Each account in the ledger is divided into two equal parts. The left hand side is the
debit side [Dr.] and the right hand side is the credit side [Cr.].
Each of the two sides is further divided into four columns for recording the date of
the transactions, the name of the account to be debited or credited, folio, and the
amount of the transaction. J.F. stands for journal folio i.e., the page number in the
journal or subsidiary book from where the posting to the account is made.
This form has six columns, viz., (1) Date; (2) Particulars ; (3) J.F.; (4) Dr. Amount
[Rs .]; (5) Cr. Amount [Rs .]; and (6) Balance.