ledger

By christy biju
Class Xl 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
o Ledger
o Types of Ledgers
o Format of Ledger
o Advantages and Disadvantages of Ledger
o Conclusion
 ledger
o A ledger is an accounting book that facilitates the transfer of
all journal entries in a chronological sequence to individual
accounts.
o The process of recording journal entries into the ledger is
called posting.
 Types of Ledgers
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
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.
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
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 The 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:
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.

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

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
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

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. 

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 2 Bank A/c C 20,000

1 Sales A/c 18,000 5 Dinesh A/c 25,000

2 Cash A/c C 20,000 18 Purchases A/c 10,000

12 Ashok A/c 8,000 40,000 20 Dinesh A/c 17,820

19 Charu A/c 29,400 22 Shiva Ltd. 45,000

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 42,180

 53,500 1,30,000 53,500 1,30,000
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 Note LF Details Amount
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 Dr 40,000
Stock A/c Dr 1,60,000
Ashok Dr 18,000
Bahadur Dr 25,000
Charu Dr 30,000
 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 30 To Balance c/d 85,000 April 1 By Cash A/c 18,000

April 30 By Sundries as per Sales 67,000

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 A/c 7,000
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 Received A/c 180

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 18 To Cash A/c 10,000 April 24 By Drawings A/c 5,000

April 30 To Sundries as per 51,300 April 30 By Balance c/d 56,300

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 Receivable A/c 20,000

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 Sales 7,000 April 30 By Balance c/d 7,000

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 A/c 15,000 April 30 By Balance b/d 15,000
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.