2. A Ledger is a book which contains all the accounts which are first
entered in journal.
According to L.C. Cropper, ‘the book which contains a classified and
permanent record of all the transactions of a business is called the
Ledger’.
It’s a permanent record of transactions that can not changed
3. It has two identical sides - left hand side (debit side) and right hand side
(credit side).
• Debit aspect of all the transactions are recorded on the debit side and credit
aspects of all the transactions are recorded on credit side according to date.
• The difference of the totals of the two sides represents balance. The excess
of debit side over credit side indicates debit balance, while excess of credit
side over debit side indicates the credit balance. If the two sides are equal,
there will be no balance.
• Generally the balance is drawn at the year end and recorded on the lesser
side to make the two sides equal. This balance is know as closing balance.
• The closing balance of the current year becomes the opening balance of the
next year.
4. Name of The Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Year
Month
Date
Accounts
name
Year
Month
Date
Accounts
name
5. Posting refers to transferring the information in a journal entry to the appropriate
ledger account. Following may be the procedure for posting:
Enter date
Enter amount in proper debit or credit column.
Enter journal source info.
6.
7. Journalise the following transactions in the books of Amar and post
them in the Ledger:-
March 2004
1 Bought goods for cash Rs. 25,000
2 Sold goods for cash Rs. 50,000
3 Bought goods for credit from Gopi Rs.19,000
5 Sold goods on credit to Robert Rs.8,000
7 Received from Robert Rs. 6,000
9 Paid to Gopi Rs.5,000
20 Bought furniture for cash Rs. 7,000
8.
9.
10. There are six accounts involved in this illustration:
Cash,
Purchases,
Sales,
Furniture,
Gopi &
Robert,
So six accounts are to be opened in the
ledger.