LEDGER When transactions are transferred into concerned account the system is called ledger. - To identify the amount of debtors - To know the amount pay to supplier - To know Good purchased during the period - To know Amount of Revenue and expenditure Procedure of recording up the accounts is known as Posting.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
investing Rs.20,000 cash into the business.2: Amit purchases equipment from Computer EquipmentLtd for Rs 9,0003: Purchase of 1,500 of stationery supplies for use in the
business.4: Rs1,000 in legal services were provided for cash.5: Legal services of Rs.1,500 were provided on credit toa client, Ravi.6: Amit makes a 3,000 partial payment to Computer
Equipment Ltd.7: Ravi pays Rs. 500 on account to Legal Services8: Amit decides to take Rs.2,000 cash from the businessfor his personal use.9: Amit a s Rs. 400 salaries to le al assistant.
Date Particulars J.F Amount Date Particulars J.F Amount
To Capital A/c 20,000 By Supplies A/c 1,500
To Service revenue 1,000 By A/P (Com. Equ.ltd) 3,000
To A/R (Ravi) 5,00 By Drawing 2,000
By Salary 400
By Balance c/d 14600
21,500 21,500
Cash A/c Cr.Dr.
Balancing the ledger Account:Difference of total Dr & total Cr is Balancing Amount
If Total Dr > Total Cr, the balancing amount is appear in Cr siderepresenting By balance c/d, called Debit balance.If Total Cr > Total Dr, the balancing amount is appear in Dr siderepresenting To balance c/d, called Credit balance.
Date Particulars J.F Amount Date Particulars J.F Amount
To Balance c/d 20,000 By Cash A/c 20,000
20,000 20,000
Capital A/c Cr.Dr.
Balancing the ledger Account:Difference of total Dr & total Cr is Balancing Amount
If Total Dr > Total Cr, the balancing amount is appear in Cr siderepresenting By balance c/d, called Debit balance.If Total Cr > Total Dr, the balancing amount is appear in Dr siderepresenting To balance c/d, called Credit balance.
Date Particulars J.F Amount Date Particulars J.F Amount
To A/P (Comp.
Equip. ltd)
9,000 By balance c/d 9,000
9,000 9,000
Computer Equipment A/c Cr.Dr.
Balancing the ledger Account:Difference of total Dr & total Cr is Balancing Amount
If Total Dr > Total Cr, the balancing amount is appear in Cr siderepresenting By balance c/d, called Debit balance.If Total Cr > Total Dr, the balancing amount is appear in Dr siderepresenting To balance c/d, called Credit balance.
Date Particulars J.F Amount Date Particulars J.F Amount
To Cash 3,000 By Computer
Equipment A/c
9,000
To Balance c/d 6,000
9,000 9,000
A/P(Computer Equipment ltd) A/c Cr.Dr.
Balancing the ledger Account:Difference of total Dr & total Cr is Balancing Amount
If Total Dr > Total Cr, the balancing amount is appear in Cr siderepresenting By balance c/d, called Debit balance.If Total Cr > Total Dr, the balancing amount is appear in Dr siderepresenting To balance c/d, called Credit balance.
Start a business with Rs. 5000 cash and a buildingworth Rs. 10000Purchase goods worth Rs. 2000, out of which 1200 oncredit from RamPurchase Machinery of Rs. 2500, Rs 500 paid in Cash
& remaining Through Bank LoanSold goods for Rs. 600, including Rs. 400 to ShyamReceived Rs. 380 from shyam in full settlement of hisaccount
Paid Rs. 100 for wages & salary Rs. 50Paid Rs 1150 for Ram for his full claimWithdraw Rs. 400 from his business, out of which 50%is for personal purpose & remaining for businesspromotion
Mr Ashok commenced business on 1st January 1992 with a
Mr Ashok commenced business on 1st January, 1992 with acapital of Rs.1,00,000 in cash. On the same date he opened thebank account and deposited Rs.20,000. During the month ofJanuary 1992 the following transactions
tookplace: Rs. Jan 1 Bought goods for cash 70,000
2 Sold good to Rahul & Co 38,000
15 Sold goods for cash 9,000
21 Rahul & co. paid by cheque 35,000 31 Paid rent by cash 2,000
Paid wages by cash 3,000
Withdrew cash personal use 5,000
Make journal entries for the transactions.Prepare necessary ledger accounts
1)Mr A deposited into bank Rs 50 000 to start a business
Prepare Jornal entries and make necessary ledgeraccounts from the following transactions
1. Mr. Ahmed invested cash Rs. 125,000
2. Bought merchandise for cash Rs.200003. Paid rent for the month Rs.50004. Purchase office supplies for Rs.15005. Sold goods for cash Rs.5000
6. Purchase goods on credit from Nasir Ali Rs.100007. Paid salaries to office staff Rs. 125008. Paid to Nasir Ali Rs.35009. Sold goods on credit to Abid Rs.1500010. Merchandise return to Nasir Ali Rs.25011. Goods were returned by Abid Rs.75012. Withdrew cash for personal use Rs.1000
. Khalid invested in business cash Rs.40000, officeequipment Rs.60,0002. Purchase merchandise for cash Rs. 60003. Purchase goods on credit from Zahid Rs.10000
4. Sold merchandise on credit to Amir Rs.100005. Paid rent expense Rs.6006. Sold merchandise for cash Rs. 35007. Earned commission Rs. 10000
8. Purchase supplies on credit from Aleem Rs. 8009. Paid traveling expense Rs. 65010. Sold merchandise to Mr. Kareem Rs. 4000 oncredit.
11. Khalid withdrew cash for personal use Rs. 300012. Rendered services to client and receivedcommission Rs. 200013. Paid insurance for the month Rs. 500