DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : NAND KISHORE SINGH

Designation : Lecturer
Branch : D.C.C.P.
Institute : S.G.M. Government Polytechnic,
Abdullapurmet,R.R.Dist
Year/Semester : I Year
Subject : ACCOUNTANCY-I
Subject Code : CCP-102
Topic : Ledger
Duration : 50 Minutes
Sub-Topic : Introduction to Ledger
Teaching Aids : PPT and Animations

CCP102.21 1
Objectives
On completion of this period, you would
be able to :

 Understand the Meaning of Ledger

 Definition of Ledger
 Understand the Sub-division of Ledger
 Differences between Journal and Ledger

CCP102.21 2
Introduction to Ledger
We know that
 Transactions are first recorded in:
Journal
 This process is called:
Journalising

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Introduction to ledger contd.

From the Journal the transactions are entered into

LEDGER

Ledger is also called a book of final entry or

Secondary entry

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 Introduction to ledger contd.

 Ledger is a register having a number of pages

 Pages are serially numbered

 Usually one page is assigned for one A/C

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Meaning of Ledger

 It is a chief book of accounts

 It is prepared in a classified form
 It contains all transactions relating to one head
 Every entry from Journal is transferred into Ledger
 Contains Personal, Real and Nominal Accounts

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 Definition of Ledger

A book in which all the personal, real and nominal accounts

of a business are kept for permanent record so that up-to-
date information on any account can be known

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Important points in definition:

 Ledger contains personal, real and nominal accounts

 It is a permanent record
 Provides easy reference of any account

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Can we find out the following from
Journal easily?
 Total sales of an individual customer
 Total purchases from an individual supplier
 Amount owed to others
 Amount owed by others to us
 Profit or loss made during a period
 Financial position of a period

CCP102.21 9
 Importance of Ledger

 Transactions relating to one account found in one

place
 Transactions relating to different dates found in one
account
 Summing up the transactions of an account for a
period becomes easy

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 LEDGER

GENERAL CREDITORS DEBTORS PRIVATE

LEDGER LEDGER LEDGER LEDGER

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 General Ledger

 Contains all accounts other than Debtors and

Creditors.
 Contains all real and nominal accounts
Examples:
 Assets accounts, goods account, etc.

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 Creditors Ledger

 Contains personal accounts of creditors or

supplliers
 Also known as Purchases Ledger or Bought
Ledger

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 Debtors Ledger

 Contains personal accounts of all customers

or debtors
 Also known as Sales Ledger or Sold Ledger

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Private Ledger

 Contains personal accounts of the

proprietor
Examples:
 Capital Account, Current Account,
Drawings Account, Final Accounts

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Differences between Journal and
Ledger
JOURNAL LEDGER
2. Subsidiary book 2. Main or Principal book
3. Book of original 3. Book of final entry
entry
4. Periodically – weekly,
4. Daily record monthly, etc.
5. Process called
5. Process called
Journalising
Posting
6. Information in the
form of entries 6. Information in the
form of accounts

CCP102.21 16
Summary

 Transactions posted from Journal to Ledger

 Meaning and definition of ledger
 Importance of ledger
 Types of ledger
 Differences between Journal and Ledger

CCP102.21 17
Quiz
1. Final Book of entry is
a) Journal
b) Ledger
c) Subsidiary Journal
d) All of the above

2. The process of entering into ledger is called:

a) Journalising
b) Posting
c) Ledgering
d) None

CCP102.21 18
 Frequently Asked Questions

Short questions
1. Write the meaning and definition of Ledger.
2. List any four differences between Journal and Ledger.

Essay questions
3. List the different types of Ledger. With examples

CCP102.21 19
Assignment

1. Write briefly the meaning and definition of

ledger.
2. What are the differences between journal and ledger.
3. List out different types of ledger with examples

CCP102.21 20
THANK YOU

CCP102.21 21