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15 Transactions With Their Journal Entries Ledger and Trial Balance To Prepare Project
15 Transactions With Their Journal Entries Ledger and Trial Balance To Prepare Project
Table of Contents
PASS THE JOURNAL ENTRIES POST THEM INTO THE LEDGER, CLOSING THE
BOOKS OF ACCOUNTS, PREPARE A TRIAL BALANCE AND FINAL ACCOUNTS (
TRADING AND PROFIT&LOSS ACCOUNT, BALANCE SHEET) –
March 8 Machinery Purchased Rs.2,50,000 and installation expenses paid Rs. 50,000. Amount
paid by cheque.
March 16 Goods sold for Cash Rs. 6,00,000 and deposited in to the bank same day.
March 20 Goods Sold on credit to Mohit & Brother Rs.2,00,000 at 25% trade discount .
March 25 Furniture Purchased for office use paid by cheque Rs. 50,000.
March 26 Cheques received from Mohit and brother Rs 1,00,000 and deposited into Bank
same day.
Also Read: 30 transactions with their Journal Entries, Ledger, Trial balance and Final
Accounts- Project
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The books in which a transaction is recorded for the first time from a source document are
called Books of Original Entry or Prime Entry. Journal
Journal is one of the books of original entry in which transactions are originally recorded in a
chronological (day-to-day) order according to the principles of Double Entry System.
Transactions when recorded in a Journal are known as entries. It is the book in which
transactions are recorded for the first time. Journal is also known as ‘Book of Original
Record’ or ‘Book of Primary Entry’.
This process of recording transactions in the journal is’ known as ‘Journalising’. Journal is also
known as ‘Book of Original Record’ or ‘Book of Primary Entry’.
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15 Transactions
LEDGER
Ledger is also called the Principal Book of Accounts.
After recording the business transactions in the Journal or special purpose Subsidiary Books, the
next step is to transfer the entries to the respective accounts in the Ledger.
Ledger is a book where all the transactions related to a particular account are
collected at one place.
A Ledger is a book which contains all the accounts whether personal, real or nominal, which
are first entered in journal or special purpose subsidiary books.
According to L.C. Cropper,” The book which contains a classified and permanent
record of all the transactions of a business is called the ledger.”
POSTING
RULES OF POSTING
*If an account is debited in the journal entry, the posting in the ledger should be
made on the debit side of that particular account. In the particular column the name of
the other account (which has been credited in the Journal entry) should be written for reference.
* For the A/c credited in the Journal entry, the posting in the ledger should be made
on the credit side of that particular account . In the particular column the name of
the other account (which has been debited in the Journal entry) should be written
for reference.
Points to be Remember
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‘To’ is written before the A/c s which appear on the debit side of ledger.
READ: 20 transactions with their Journal Entries, Ledger and Trial balance to prepare project
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TRIAL BALANCE
First step recording of transactions in journal. The next step post them into ledger and the next step
in the accounting process is to prepare a statement to check the arithmetical accuracy of the
transactions recorded so for. This statement is called ‘Trial Balance’.
Trial Balance
As on
March, 2020
31st
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Rs. Rs.
Cash Account —————
1,40,000
Capital Account 20,00,000
————-
Bank Account ————-
17,55,000
Purchase Account ————-
4,00,000
Machinery Account ————-
3,00,000
Computer Account ————-
30,000
Sales Account 7,50,000
————
Mohit &Company(Debtors) ————-
50,000
Furniture Account ————-
50,000
Commission Received Account 10,000
———–
Carriage Account ———–
10,000
Advertisement Account ———–
20,000
Bank Charges ————-
5,000 27,60,000
TOTAL 27,60,000
FINAL ACCOUNTS
The accounts which are prepared at the final stage (at the end of the financial year) of the
accounting cycle to know the profit or loss and financial position of a business concern are called
Final Accounts.
Final accounts gives an idea about the Profitabilitty and Financial position of a business to its
management, owners, and other interested parties.
Sheet
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FORMAT OF TRADING ACCOUNT
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