LEDGER
Amitabha Maheshwari
Faculty Finance
PIMG
LEDGER AND POSTING
• The place where record of all business transactions relating
to a particular person, firm or an item ...
LEDGER AND POSTING
• The specimen of an account is given below:
LEDGER ACCOUNT
Date
DR.

Particulars

J.F.

Amount

Date

...
LEDGER AND POSTING

• 3. Journal Folio: The page number of Journal or Subsidiary book
having the entry is written in this ...
LEDGER AND POSTING
• The process of transferring the information contained in a Journal to a
Ledger is called posting.
• T...
LEDGER AND POSTING
• 5. In the folio column, the page number of journal from where the entry is
transferred to ledger acco...
LEDGER AND POSTING
• (ii) Posting an Account credited in a Journal entry: The steps to be
followed are:
• First: Identify ...
Journalize the following transactions, post them in Ledger
Accounts and balance them:
• 2007
Rs.
• April 1 Kamal started b...
• April 15 Purchased Plant and Machinery
and payment is made by cheque
• April 19 Paid to Surya in cash
• April 21 Receive...
Date

Particular

2007
April 1

Cash A/c
To Capital A/c

Dr.

Purchases A/c
To Cash A/c

Dr.

April 2

April 3

April 4

L...
Date

April 7

April 10

April 15

April 19

Particular

L.F.

Dr.(Rs.)

Purchases A/c
Dr.
To Surya
(Being goods purchased...
Date

Particular

L.F. Dr.(Rs.)

Bank A/c
Dr.
To Anil’s Loan A/c
April 21
(Being loan from Anil received and
deposited int...
Date

Particular

Cash A/c

L.F.

Dr.

Dr.(Rs.)

Cr.(Rs.)

10,000

To Rakesh
April 29
(Being cash received from Rakesh)

1...
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Ledger

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Ledger

  1. 1. LEDGER Amitabha Maheshwari Faculty Finance PIMG
  2. 2. LEDGER AND POSTING • The place where record of all business transactions relating to a particular person, firm or an item is- kept is termed as 'Account'. The book is which such accounts are kept is termed as 'Ledger' • Thus, an account is a record of all the transactions in summarized form that have taken place in relation to a particular person or thing specified. Account is prepared and presented in 'T' shape, divided into two equal sides. Traditionally, the left side is called Debit (Dr.) side and right side is called credit (Cr.) side.
  3. 3. LEDGER AND POSTING • The specimen of an account is given below: LEDGER ACCOUNT Date DR. Particulars J.F. Amount Date Particulars J.F. Amount CR. • Description of Ledger Account: The Account is divided into two equal parts i.e., Debit Side and Credit Side. Each side has four columns: Date, particulars, J.E and Amount. The description of each column is given below: • 1. Date: The date of transaction which is recorded in Journal/Subsidiary Book is written in this column. • 2. Particulars: 'To' and 'By' words are written is Debit and Credit side respectively and name of opposite account of the particulars journal entry is also written.
  4. 4. LEDGER AND POSTING • 3. Journal Folio: The page number of Journal or Subsidiary book having the entry is written in this column. 'J.E' means 'Journal Folio' or page number of 'Journal'. Here, Subsidiary Books are also termed as special Journals. • 4. Amount: The amount of related transaction is written in this column.
  5. 5. LEDGER AND POSTING • The process of transferring the information contained in a Journal to a Ledger is called posting. • The following rules should be kept in mind while posting transactions in the ledger from the Journal: • 1. Separate accounts should be opened in the ledger for posting transactions relating to different accounts recorded in the Journal. • 2. The concerned account which has been debited in the journal should also be debited. However, a reference should be made of the other account which has been credited in the journal. • 3. The credit of the journal entry is posted to the credit side of the account but a reference should be given of the other account which has been debited in the journal.
  6. 6. LEDGER AND POSTING • 5. In the folio column, the page number of journal from where the entry is transferred to ledger account is written. • 6. The date of the transaction is written on the date column. • The following procedure is followed for posting the debit' and credit aspect of the transaction recorded in a Journal • (i) Posting of Account debited in a Journal entry: The steps to be followed are: • First: Identify in the Ledger the account to be debited. • Second: Enter the date of the transaction in the 'Date' column on the debit side of the account. • Third: Write the name of the account which has been credited in the respective entry in the 'Particulars Column' on the debit side of the account as 'To (name of account credited)'. • Fourth: Record the page number of the Journal where the entry exists in the folio column. • Fifth: Enter the relevant amount in the 'Amount' column on the debit side.
  7. 7. LEDGER AND POSTING • (ii) Posting an Account credited in a Journal entry: The steps to be followed are: • First: Identify in the Ledger the account to be credited. • Second: Enter the date of the transaction in the 'Date' column on the credit side. • Third: Write the name of the account which has been debited in the respective entry in the 'Particulars Column' on the credit side of the account as 'By (name of account debited)'. • Fourth: Record the page number of the Journal where the entry exists in the folio column. • Fifth: Enter the relevant amount in the 'Amount' column on the credit side.
  8. 8. Journalize the following transactions, post them in Ledger Accounts and balance them: • 2007 Rs. • April 1 Kamal started business with cash 1,00,000 • April 2 Bought goods for cash 30,500 • April 3 Opened Bank Account with cash 50,000 • April 4 Sold goods for cash 40,000 • April 7 Bought goods from Surya on credit 30,000 • April 10 Sold goods to Rakesh on credit 25,000
  9. 9. • April 15 Purchased Plant and Machinery and payment is made by cheque • April 19 Paid to Surya in cash • April 21 Received loan from Anil and deposited the same into bank • April 23 Goods returned to Surya • April 26 Withdrew from bank for personal use • April 27 Paid to Surya by cheque • April 29 Received cash from Rakesh • April 30 Purchased stationery for cash • April 30 Paid wages and salaries 16,600 10,000 8,000 1,000 5,000 8,000 10,000 200 10,000
  10. 10. Date Particular 2007 April 1 Cash A/c To Capital A/c Dr. Purchases A/c To Cash A/c Dr. April 2 April 3 April 4 L.F. Dr.(Rs.) Cr.(Rs.) 1,00,000 1,00,000 Bank A/c Dr. To Cash A/c (Being a bank account opened by depositing) Cash A/c Dr. To Sales A/c (Being goods sold for cash) 30,500 30,500 50,000 50,000 40,000 40,000
  11. 11. Date April 7 April 10 April 15 April 19 Particular L.F. Dr.(Rs.) Purchases A/c Dr. To Surya (Being goods purchased on credit from Surya) Rakesh Dr. To Sales A/c (Being goods sold to Rakesh on credit) 30,000 Plant and Machinery A/c Dr. To Bank A/c (Being plant and machinery purchased by cheque) Surya Dr. To Cash A/c (Being amount paid to Surya in cash) Cr.(Rs.) 16,600 30,000 25,000 25,000 16,600 10,000 10,000
  12. 12. Date Particular L.F. Dr.(Rs.) Bank A/c Dr. To Anil’s Loan A/c April 21 (Being loan from Anil received and deposited into bank) Surya Dr. To Returns Outwards A/c April 23 (Being goods returned to Surya) 8,000 Drawings A/c Dr. To Bank A/c April 26 (Being amount withdrawn from bank for personal use) Surya Dr. To Bank A/c April 27 (Being amount paid to Surya by cheque) Cr.(Rs.) 5,000 8,000 1,000 1,000 5,000 8,000 8,000
  13. 13. Date Particular Cash A/c L.F. Dr. Dr.(Rs.) Cr.(Rs.) 10,000 To Rakesh April 29 (Being cash received from Rakesh) 10,000 Stationery A/c Dr. To Cash A/c April 30 (Being stationery purchased for cash) 200 Wages and Salary A/c Dr. To Cash A/c April 30 (Being wages and salaries paid in cash) 10,000 200 10,000

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