Ledger

By: Vaishal
Class: XI B
 Acknowledgment
I would like to express my gratitude to my teacher, Mrs.
Madhurima sajith as well as our principal, sr. sherly cj, for
giving me this opportunity to do this wonderful project.

I would also like to thank my friends for helping me to

complete this project before the deadline.

Thank you
 index
•Ledger
•Types of Ledgers
•Format of Ledger
•Advantages and Disadvantages of Ledger
•Conclusion
 ledger
•A ledger is an accounting book that facilitates the
transfer of all journal entries in a chronological
sequence to individual accounts.
•The process of recording journal entries into the
ledger is called posting.
 Types of Ledgers
1. General Ledger
The general ledger accumulates information from journals. Each
month all journals are totaled and posted to the General Ledger. The
purpose of the General Ledger is therefore to organize and
summarize the individual transactions listed in all the journals.
2. Debtors Ledger
The Debtors Ledger accumulates information from the sales journal.
The purpose of the Debtors Ledger is to provide knowledge about
which customers owe money to the business, and how much. More
information on Debtors Ledger.
3. Creditors Ledger
The Creditors Ledger accumulates information from the purchases
journal. The purpose of the Creditors Ledger is to provide
knowledge about which suppliers the business owes money, and
how much.
 Format of Ledger
The ledger account is prepared in T format. It is divided into two
parts. Left side is debit side and right side is credit side. Each side
contains four columns. The name or title of the account is placed at
the top middle and the details are entered in the ledger. The format
of ledger account is given below:
Dr. Name of the Ledger Account Cr.
Date Particulars JF Amount Date Particulars JF Amount

Date : Date of the transaction is recorded in this column.

Particulars : The account debited or credited is recorded in this
column. On the debit side, the entries are made starting with ‘To’
and on the credit side, entries are made starting with ‘By’.
Journal Folio (J.F.): In this column, the page number of the journal or
subsidiary books from which the entry has been posted to the ledger
is noted.
Amount : The amount of the transaction is recorded in this column.
 Advantages and Disadvantages of Ledger
Advantages:
1. Easy Trial Balance Creation
A trial balance requires a ledger account balance in order to be easily
prepared. Due to this, it is almost impossible to create a trial balance
without the help of a ledger.
2. Application of Double Entry System 
The double-entry system’s application process can be completed
only if the journals are posted to separate ledger accounts.
3. Minimize the Chances of Accounting Errors and
Omissions
Since the transactions are initially recorded in a journal before the
ledger, it reduces the chances of accounting errors and omissions. 
4. Analyze the Total Income and Expenses of a
Business 
Different types of income and expenses of a business are recorded in
separate ledgers. So, it becomes possible to analyze the amount of
income and expenditure under each head over a particular period.

5. For Storing and Collecting Information

Ledger offers a great way for storing various types of transaction
information. The transactional information can be organized within
a ledger in terms of assets, liabilities, revenue, and expenses. Once
each ledger is closed, the trial balance is prepared, which is required
to produce income statements, balance sheets and other essential
financial reports. 
6. For Understanding a Business’s Present Financial
Position 
The present financial position of an enterprise after creating the
final account can easily be recognized with proper maintenance of a
ledger account.
Disadvantages:
1. Ledger is not entirely safe since anyone can easily access the book
or file from the system.
2. These are sensitive financial documents and call for extra security.
3. It is dependent upon the transactions recorded in the journal. If
there’s any mistake in transaction records in the journal, the results
of the transaction posting inside the ledger will also be unreliable.
4. Maintaining a ledger is a time-consuming task.
Question 10:
Enter the following transactions in subsidiary books, post them into Ledger and
prepare a Trial Balance:
The following balances existed in Sunil Bros. books on April 1, 2017:
Assets : Cash in hand ₹ 27,500; Bank Balance ₹ 40,000; Debtors : Ashok ₹ 18,000,
Bahadur ₹ 25,000, Charu ₹ 30,000; Stock ₹ 1,60,000 and Furniture ₹ 40,000.
Liabilities : Creditors : Dinesh ₹ 20,000 and Ekta ₹ 15,000.
2017
April 1 Cash Sales 18,000

2 Deposited into Bank 20,000

3 Purchased from Dinesh:
300 meters Cotton @ 60 per meter
200 meters Silk @ 100 per meter

5 Cheque issued to Dinesh for 25,000

6 Accepted a bill at one month for 15,000 drawn by Dinesh
8 Sold to Ashok:
400 meters Cotton @ 80 per meter
250 meters Silk @ 140 per meter
10 Returned by Ashok 50 meters Silk
12 Received Cash 8,000 and a Cheque for 40,000 from Ashok.
Cheque was immediately sent to bank
13 Received a B/R from Bahadur for 20,000 at one month
15 Accepted a bill at two months drawn by Ekta for the amount due to
her
16 Purchased a Computer for office use from Shiva Ltd. For 45,000 on
credit.
18 Cash purchases 10,000
19 Received full payment from Charu by cheque, sent it to bank.
Discount allowed 2%
20 Issued a cheque to Dinesh in full payment of his account after
deducting 1% discount
22 Settled the account of Shiva Ltd. by cheque
24 Proprietor took away goods worth 5,000 and cash 6,000
25 Purchased from Ganesh 200 meters Cotton @ 70 per meter subject
to trade discount of 5%
27 Paid Rent 3,000 and Salaries 8,000
30 Interest allowed by bank 600
Ans. Cash Book
Date Particulars LF Cash Bank Date Particulars LF Cash Bank
2017 2017
April 1 Balance b/d 27,500 40,000 April Bank A/c C 20,00
2 0
1 Sales A/c 18,000 5 Dinesh A/c 25,00
0
2 Cash A/c C 20,000 18 Purchases A/c 10,00
0
12 Ashok A/c 8,000 40,000 20 Dinesh A/c 17,82
0
Charu A/c 29,400 22 Shiva Ltd. 45,00
19 0
30 Interest A/c 600 24 Drawings A/c 6,000
27 Rent A/c 3,000
27 Salaries A/c 8,000
30 Balance c/d 6,500 42,18
0
 53,500 1,30,00 53,500 1,30,00
0 0
May 1 Balance b/d 6,500 42,180

Purchases Book
Date Particulars LF Details Amount
2017
April 3 Dinesh
300 meters Cotton @ Rs 60 per meter 18,000
200 meters Silk @ Rs 100 per meter 20,000 38,000
April 25 Ganesh
200 meters Cotton @ Rs 70 per meter 14,000
- 5% Trade Discount 700 13,300
April 30 Total 51,300

Sales Book
Date Particulars LF Details Amount
2017
April 8 Ashok
400 meters Cotton @ Rs 80 per meter 32,200
 250 Meters Silk @ Rs 140 per meter 35,000 67,000
April 30 Total 67,000

Sales Return Book

Date Particulars Credit LF Details Amount
Note No.
2017
April 10 Ashok
50 meters Silk @ Rs 140 per meter 7,000 7,000
April 30 Total 7,000
Journal Entry
Date Particulars LF Amount Dr Amount Cr
2017
April 1 Cash in Hand A/c Dr 27,500
Bank A/c 40,000
Dr
Stock A/c 1,60,000
Dr
Ashok 18,000
Dr
 Furniture A/c Dr 40,000
To Dinesh 20,000
To Ekta 15,000
To Capital A/c 3,05,500
(Opening Entry Passes)
April 6 Dinesh Dr 15,000
To Bills Payable A/c 15,000
(Bills accepted from Dinesh)
April 13 Bills Receivables A/c Dr 20,000
To Bahadur 20,000
(Bills received from Bahadur)
April 15 Ekta Dr 15,000
To Bills Payable A/c 15,000
(Bills accepted from Ekta)
April 16 Computer A/c Dr 45,000
To Shiva Ltd. 45,000
(Purchased computer on credit)
4,35,500 4,35,500
 Brought Forward (B/F) 4,35,500 4,35,500
April 19 Discount Allowed A/c Dr 600
To Charu 600
(Discount allowed to Charu)
April 20 Dinesh Dr 180
To Discount Received A/c 180
(Received discount from Dinesh)
April 24 Drawings A/c Dr 5,000
To Purchases A/c 5,000
(Goods withdrawn by proprietor)
Total 4,41,280 4,41,280

Sales Account

Date Particulars JF Amount Date Particulars JF Amount

2017 2017
April To Balance c/d 85,000 April By Cash A/c 18,000
30 1
April By Sundries as per 67,000
30 Sales Book
 85,000 85,000
2017
May 1 By Balance b/d 85,000

Ashok’s Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 1 To Balance b/d 18,000 April 12 By Cash A/c 8,000
April 8 To Sales A/c 67,000 April 12 By Bank A/c 40,000
April 10 By Sales Returns 7,000
A/c
April 30 By Balance c/d 30,000
85,000 85,000
May 1 To Balance c/d 30,000
Charu’s Account
Date Particulars JF Amount Date Particulars JF Amount
2017
April 1 To Balance b/d 30,000 April 19 By Bank A/c 29,400
April 19 By Discount Allowed A/c 600
30,000 30,000
 Interest Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 30 To Balance c/d 600 April 30 By Bank A/c 600
600 600
2017
May 1 By Balance b/d 600

Dinesh’s Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 5 To Bank A/c 25,000 April 1 By Balance b/d 20,000
April 6 To Bills Payable A/c 15,000 April 3 By Purchases A/c 38,000
April 20 To Bank A/c 17,820
April 20 To Discount 180
Received A/c
58,000 58,000
 Shiva Ltd. Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 22 To Bank A/c 45,000 April 16 By Computer A/c 45,000
45,000 45,000

Purchases Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April To Cash A/c 10,000 April 24 By Drawings A/c 5,000
18
April To Sundries as 51,300 April 30 By Balance c/d 56,300
30 per Purchases
book

61,300 61,300
2017
May 1 To Balance b/d 56,300
 Drawings Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 24 To Cash A/c 6,000 April 30 By Balance c/d 11,000
April 24 To Purchases A/c 5,000
11,000 11,000
2017
May 1 Balance b/d 11,000

Rent Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 27 To Cash A/c 3,000 April 30 By Balance c/d 3,000
3,000 3,000
2017
May 1 To Balance b/d 3,000
 Ganesh’s Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 30 To Balance c/d 13,300 April 25 By Purchases A/c 13,300
13,300 13,000
2017
May 1 By Balance b/d 13,300

Bahadur’s Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 1 To Balance b/d 25,000 April 13 By Bills 20,000
Receivable A/c
April 30 By Balance c/d 5,000
25,000 25,000
2017
May 1 To Balance b/d 5,000
 Salaries Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 27 To Cash A/c 8,000 April 30 By Balance c/d 8,000
8,000 8,000
2017
May 1 To Balance b/d 8,000

Sales Return Account

Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 30 To Sundries as per 7,000 April 30 By Balance c/d 7,000
Sales Return Book
7,000 7,000
2017
May 1 To Balance b/d 7,000
 Stock Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 1 To Balance b/d 1,60,000 April 30 By Balance c/d 1,60,000
1,60,000 1,60,000
2017
May 1 To Balance b/d 1,60,000

Furniture Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 1 To Balance b/d 40,000 April 30 By Balance c/d 40,000
40,000 40,000
2017
May 1 To Balance b/d 40,000
 Ekta’s Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 15 To Bills Payable 15,000 April 30 By Balance b/d 15,000
A/c
15,000 15,000

Bills Payable Account

Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 30 To Balance c/d 30,000 April 6 By Dinesh 15,000
April 15 By Ekta 15,000
30,000 30,000
2017
May 1 By Balance b/d 30,000
 Computer Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 16 To Shiva Ltd 45,000 April 30 By Balance c/d 45,000
45,000 45,000
2017
May 1 To Balance b/d 45,000

Discount Allowed Account

Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 19 To Charu’s A/c 600 April 30 By Balance c/d 600
600 600
2017
May 1 To Balance b/d 600
 Bills Receivable Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 13 To Bahadur’s A/c 20,000 April 13 By Balance c/d 20,000
20,000 20,000
2017
May 1 To Balance b/d 20,000

Capital Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 30 To Balance c/d 3,05,500 April 1 By Balance b/d 3,05,500
3,05,500 3,05,500
2017
May 1 By Balance b/d 3,05,500
 Discount Received Account
Date Particulars JF Amount Date Particulars JF Amount
2017 2017
April 30 To Balance c/d 180 April 20 By Dinesh’s A/c 180
180 180
2017
May 1 By Balance b/d 180

Trial Balance
As on April 30, 2017
Name of Accounts LF Debit Amount Credit amount
Cash A/c 6,500 -
Bank A/c 42,180 -
Sales A/c - 85,000
Ashok’s A/c 30,000 -
Interest A/c - 600
Purchases A/c 56,300 -
Drawings A/c 11,000 -
Rent A/c 3,000 -
Ganesh’s A/c - 13,300
Salaries A/c 8,000 -
Sales Returns A/c 7,000 -
Bahadur’s A/c 5,000 -
Stock A/c 1,60,000 -
Furniture A/c 40,000 -
Bills Receivable A/c 20,000 -
Bills Payable A/c - 30,000
Computer A/c 45,000 -
Capital A/c - 3,05,500
Discount Allowed A/c 600 -
Discount Received A/c - 180
Total 4,34,580 4,34,580
 conclusion
A ledger is a mirror which shows the concerned
transactions of a particular company throughout the
financial year. It gives you an idea about the financial
status of the company. The final balances of all the ledgers
make up the Trial Balance. In short, accurate ledger
keeping is essential for the growth and decision-making
process of the company.