ASSIGNMENT

Unit I: LEDGER
Module 3 – Ledger

1. From the following transactions Prepare necessary ledger accounts in the books of Mr. Joshi and
balance the same.
2011 July 1 Started Business with Cash Rs 8,000.
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.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
July July
2011 2011
1 Capital A/c 8,000 10 Rent A/c 900
6 Sales A/c 3,800 15 Purchases A/c 800
23 Kulkarni A/c 1,000 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.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
July July
2011 2011
31 Balance c/d 1 Cash A/c
8,000 8,000

Purchases Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
July July
2011 2011
4 Deshmukh 2,700 31 Balance c/d 3,500
A/c
15 Cash A/c 800
3,500 3,500

Sales Account

Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
July 6,000 July
2011 2011

31 Balance c/d 6,000 6 By Cash A/c 3,800

By Discount
6 200
Allowed A/c
20 By Kulkarni A/c 2,000
6,000
 Rent Account

Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
July July
2011 2011
10 Cash A/c 31 Balance c/d
900 900

Deshmukh’s Account

Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
July July
2011 2011
22 Cash A/c 2,700 4 Purchases A/c 2,700
2,700 2,700

Kulkarni’s Account

Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
July July
2011 2011
20 Sales A/c 2,000 23 Cash A/c 1,000
31 Balance c/d 1,000
2,000 2,000

Wages Account

Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
July July
 2011 2011
31 Cash A/c 500 31 Balance c/d 500
500 500

Discount Allowed Account

Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
July July
2011 2011
6 Sales A/c 31 Balance c/d
200 200

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

It is also known as the principal book of accounts as well as the book of final entry. It
is a book in which all ledger accounts and related monetary transactions are
maintained in a summarized and classified form. All accounts combined together
make a ledger and form a permanent record of all transactions. All the journal entries
prepared in the earlier step are posted into respected ledgers chronologically. A ledger
shows the summary of all the financial transactions related to such account. For
example: – In cash ledger, we find a summary of all the cash transactions.

Ledger posting means nothing but transferring debit and credit items from journal
entries into their
respective accounts. In order to do this, we must first ensure that every single item
contains a separate
account.
While posting entries, the account which has been debited in the journal entry has to
be debited
in the ledger as well. However, we have to mention the name of the other account.
Similarly, the account which is credited in the journal entry is recorded on the credit
side of the
ledger but the reference is given to the other account in the entry.
It is customary to mention the words “To” and “By” as a prefix before debited and
credited
accounts respectively.