Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Journal and ledger posting
Some unusual transactions and
their journal entries
June 1, 2004 – Anju contributed capital Rs.
50,000
Manju contributed capital Rs.
70,000
50000
70000
Anju Manju
Capital
17. June 1, 2004 – Anju contributed capital Rs. 50,000
Manju contributed capital Rs. 70,000
Journal
Jualy 1, 2004 – Ajay contributed capital – Cash Rs.
90,000, Furniture Rs. 20,000
Vijay contributed capital – Cash Rs. 50,0...
Journal
July 1, 2004 – Ajay contributed capital – Cash Rs. 90,000, Furniture Rs. 20,000
Vijay contributed capital – Cash R...
July 13, 2003 – Received cash Rs.24,700 from
Shanthi in full settlement of her account of
Rs.25,000.
July 13, 2003 – Received cash Rs.24,700 from Shanthi in full settlement of her
account of Rs.25,000.
20. July 14, 2003 – Paid cash to Thenmozhi s.14,500, in full settlement
of her account of Rs.15,000.
21. Jamuna who owed us Rs.10,000 is declared insolvent and
25% in a rupee is received from her on 15th July, 2003.
Insolve...
What is bad debts?
The term bad debts usually refers to accounts receivable (or
trade accounts receivable) that will not b...
Journal
21. Jamuna who owed us Rs.10,000 is declared insolvent and
25% in a rupee is received from her on 15th July, 2003.
Received cash for a Bad debt written off last year
Rs.7,500 on 18th January, 2004.
Insolvent Solvent
Journal
Received cash for a Bad debt written off last year
Rs.7,500 on 18th January, 2004.
Ledger posting
• A Ledger is a book which contains all the accounts which
are first entered in journal.
• According to L.C. Cropper, ‘the...
Name of The Account
Dr. Cr.
Format of Ledger
Date Particulars JF Amount
AED
Date Particulars JF Amount
AED
Year
Month
Date...
• i. Each ledger account is divided into two parts. The left hand side is known as the debit side
and the right hand side ...
The process of transferring the
entries recorded in the journal or subsidiary
books to the respective accounts opened in
t...
I. Procedure of posting for an Account which has been debited in the journal entry.
Step 1 →Locate in the ledger, the acco...
II. Procedure of posting for an Account which has been credited in the journal entry.
Step 1 →Locate in the ledger the acc...
Example of Ledger and Posting
Journal
Mr. Ram started business with cash
Rs.5,00,000 on 1st June 2003.
Write the journal of this
transaction
Journal
Mr. Ram started business with cash
Rs.5,00,000 on 1st June 2003.
Try to find how many accounts
involved in the journal
Cash Account
Ram,s Capital
Account
For ledger posting draw 2 Ledgers
Cash Account
Ram,s Capital
Account
Name of Account
Dr. Cr.
Date Particulars JF Amount
AED
Date Particulars JF Amount
AED
Year
Month
Date
Accounts name Year
M...
Write the name of Accounts at the
top of each ledger.
Cash Account
Ram,s Capital
Account
Cash Account
Dr. Cr.
Date Particulars JF Amount
AED
Date Particulars JF Amount
AED
Year
Month
Date
Accounts name Year
Mont...
Input the dates
Cash Account
Dr. Cr.
Date Particulars JF Amount
AED
Date Particulars JF Amount
AED
2003
June 1
Accounts name Year
Month
Da...
Start Debit side with “To”
Start “Credit side with “By”
Cash Account
Dr. Cr.
Date Particulars JF Amount
AED
Date Particulars JF Amount
AED
2003
June 1
To Rams
Account
Year
Month
...
Insert the amount
Cash Account
Dr. Cr.
Date Particulars JF Amount
AED
Date Particulars JF Amount
AED
2003
June 1
To Rams
Account
500,000 Yea...
Sum up debit and credit side
Cash Account
Dr. Cr.
Date Particulars JF Amount
AED
Date Particulars JF Amount
AED
2003
June 1
To Rams
Account
500,000
500...
Adjust debit credit with
Balance Carried Down or
Balance C/d
Cash Account
Dr. Cr.
Date Particulars JF Amount
AED
Date Particulars JF Amount
AED
2003
June 1
To Rams
Account
500,000
500...
Carry forward the adjusted balance
Balance Brought Down or
Balance b/d
Cash Account
Dr. Cr.
Date Particulars JF Amount
AED
Date Particulars JF Amount
AED
2003
June 1
July 1
To Rams
Account
Bala...
Rams Capital Account
Dr. Cr.
Date Particulars JF Amount
AED
Date Particulars JF Amount
AED
2003
June 30 Balance c/d 500,00...
Journalise the following transactions in the books of
Amar and post them in the Ledger:-
2004
March1 Bought goods for cash...
Journal of Amar
There are six accounts involved:
• Cash,
• Purchases,
• Sales,
• Furniture,
• Gopi &
• Robert,
so six accounts are to be o...
Cash Account
In the Books of Amar
Purchases Account
Sales Account
Furniture Account
Gopi Account
Robert Account
The following are the advantages of ledger:
i. Complete information at a glance:
All the transactions pertaining to an acc...
Compound or Combined Journal Entry is one where more than one
transactions are recorded by passing only one journal entry ...
Journal
Illustration 3 :
Jan. 12, 2003, Cash sales Rs.10,000, Cash received from
Kannan Rs.5,000 and commission earned Rs....
Journal ledger and trial balance
Journal ledger and trial balance
Upcoming SlideShare
Loading in …5
×

Journal ledger and trial balance

14,654 views

Published on

How to record journals, posting to the ledger and prepare trial balance

Published in: Business
  • Dating for everyone is here: ❶❶❶ http://bit.ly/39pMlLF ❶❶❶
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Dating direct: ❤❤❤ http://bit.ly/39pMlLF ❤❤❤
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Journal ledger and trial balance

  1. 1. Journal and ledger posting
  2. 2. Some unusual transactions and their journal entries
  3. 3. June 1, 2004 – Anju contributed capital Rs. 50,000 Manju contributed capital Rs. 70,000 50000 70000 Anju Manju Capital
  4. 4. 17. June 1, 2004 – Anju contributed capital Rs. 50,000 Manju contributed capital Rs. 70,000 Journal
  5. 5. Jualy 1, 2004 – Ajay contributed capital – Cash Rs. 90,000, Furniture Rs. 20,000 Vijay contributed capital – Cash Rs. 50,000 Stock Rs. 70,000 Ajay cash Furniture Vijay
  6. 6. Journal July 1, 2004 – Ajay contributed capital – Cash Rs. 90,000, Furniture Rs. 20,000 Vijay contributed capital – Cash Rs. 50,000, Stock Rs. 70,000
  7. 7. July 13, 2003 – Received cash Rs.24,700 from Shanthi in full settlement of her account of Rs.25,000.
  8. 8. July 13, 2003 – Received cash Rs.24,700 from Shanthi in full settlement of her account of Rs.25,000.
  9. 9. 20. July 14, 2003 – Paid cash to Thenmozhi s.14,500, in full settlement of her account of Rs.15,000.
  10. 10. 21. Jamuna who owed us Rs.10,000 is declared insolvent and 25% in a rupee is received from her on 15th July, 2003. Insolvent: Unable to meet debts or discharge liabilities
  11. 11. What is bad debts? The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected. However, bad debts can also refer to notes receivable that will not be collected. The bad debts associated with accounts receivable is reported on the income statement as Bad Debts Expense or Uncollectible Accounts Expense.
  12. 12. Journal 21. Jamuna who owed us Rs.10,000 is declared insolvent and 25% in a rupee is received from her on 15th July, 2003.
  13. 13. Received cash for a Bad debt written off last year Rs.7,500 on 18th January, 2004. Insolvent Solvent
  14. 14. Journal Received cash for a Bad debt written off last year Rs.7,500 on 18th January, 2004.
  15. 15. Ledger posting
  16. 16. • 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. Ledger
  17. 17. Name of The Account Dr. Cr. Format of Ledger Date Particulars JF Amount AED Date Particulars JF Amount AED Year Month Date Accounts name Year Month Date Accounts name
  18. 18. • i. Each ledger account is divided into two parts. The left hand side is known as the debit side and the right hand side is known as the credit side. The words ‘Dr.’ and ‘Cr.’ are used to denote Debit and Credit. • ii. The name of the account is mentioned in the top (middle) of the account. • iii. The date of the transaction is recorded in the date column. • iv. The word ‘To’ is used before the accounts which appear on the debit side of an account in the particulars column. Similarly, the word ‘By’ is used before the accounts which appear on the credit side of an account in the particulars column. • v. The name of the other account which is affected by the transaction is written either in the debit side or credit side in the particulars column. • vi. The page number of the Journal or Subsidiary Book from where that particular entry is transferred, is entered in the Journal Folio (J.F) column. • vii. The amount pertaining to this account is entered in the amount column. Explanation:
  19. 19. The process of transferring the entries recorded in the journal or subsidiary books to the respective accounts opened in the ledger is called Posting. Posting
  20. 20. I. Procedure of posting for an Account which has been debited in the journal entry. Step 1 →Locate in the ledger, the account to be debited and enter the date of the transaction in the date column on the debit side. Step 2 →Record the name of the account credited in the Journal in the particulars column on the debit side as “To..... (name of the account credited)”. Step 3 →Record the page number of the Journal in the J.F column on the debit side and in the Journal, write the page number of the ledger on which a particular account appears in the L.F. column. Step 4 →Enter the relevant amount in the amount column on the debit side. Procedure of posting
  21. 21. II. Procedure of posting for an Account which has been credited in the journal entry. Step 1 →Locate in the ledger the account to be credited and enter the date of the transaction in the date column on the credit side. Step 2 → Record the name of the account debited in the Journal in the particulars column on the credit side as “By...... (name of the account debited)” Step 3 → Record the page number of the Journal in the J.F column on the credit side and in the Journal, write the page number of the ledger on which a particular account appears in the L.F. column. Step 4 → Enter the relevant amount in the amount column on the credit side. Procedure of posting
  22. 22. Example of Ledger and Posting
  23. 23. Journal Mr. Ram started business with cash Rs.5,00,000 on 1st June 2003. Write the journal of this transaction
  24. 24. Journal Mr. Ram started business with cash Rs.5,00,000 on 1st June 2003.
  25. 25. Try to find how many accounts involved in the journal Cash Account Ram,s Capital Account
  26. 26. For ledger posting draw 2 Ledgers Cash Account Ram,s Capital Account
  27. 27. Name of Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED Year Month Date Accounts name Year Month Date Accounts name Name of Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED Year Month Date Accounts name Year Month Date Accounts name
  28. 28. Write the name of Accounts at the top of each ledger. Cash Account Ram,s Capital Account
  29. 29. Cash Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED Year Month Date Accounts name Year Month Date Accounts name Ram’s Capital Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED Year Month Date Accounts name Year Month Date Accounts name
  30. 30. Input the dates
  31. 31. Cash Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED 2003 June 1 Accounts name Year Month Date Accounts name
  32. 32. Start Debit side with “To” Start “Credit side with “By”
  33. 33. Cash Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED 2003 June 1 To Rams Account Year Month Date Accounts name
  34. 34. Insert the amount
  35. 35. Cash Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED 2003 June 1 To Rams Account 500,000 Year Month Date Accounts name
  36. 36. Sum up debit and credit side
  37. 37. Cash Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED 2003 June 1 To Rams Account 500,000 500,000 Year Month Date Accounts name
  38. 38. Adjust debit credit with Balance Carried Down or Balance C/d
  39. 39. Cash Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED 2003 June 1 To Rams Account 500,000 500,000 2003 June 30 Balance c/d 500,000 500,000
  40. 40. Carry forward the adjusted balance Balance Brought Down or Balance b/d
  41. 41. Cash Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED 2003 June 1 July 1 To Rams Account Balance b/d 500,000 500,000 500,000 2003 June 30 Balance c/d 500,000 500,000
  42. 42. Rams Capital Account Dr. Cr. Date Particulars JF Amount AED Date Particulars JF Amount AED 2003 June 30 Balance c/d 500,000 500,000 2003 June 1 July 1 By Cash A/c Balance b/d 500,000 500,000 500,000
  43. 43. Journalise the following transactions in the books of Amar and post them in the Ledger:- 2004 March1 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 Illustration 3.
  44. 44. Journal of Amar
  45. 45. There are six accounts involved: • Cash, • Purchases, • Sales, • Furniture, • Gopi & • Robert, so six accounts are to be opened in the ledger.
  46. 46. Cash Account In the Books of Amar
  47. 47. Purchases Account
  48. 48. Sales Account
  49. 49. Furniture Account
  50. 50. Gopi Account
  51. 51. Robert Account
  52. 52. The following are the advantages of ledger: i. Complete information at a glance: All the transactions pertaining to an account are collected at one place in the ledger. By looking at the balance of that account, one can understand the collective effect of all such transactions at a glance. ii. Arithmetical Accuracy With the help of ledger balances, Trial balance can be prepared to know the arithmetical accuracy of accounts. iii. Result of Business Operations It facilitates the preparation of final accounts for ascertaining the operating result and the financial position of the business concern. iv. Accounting information The data supplied by various ledger accounts are summarized, analyzed and interpreted for obtaining various accounting information. ADVANTAGES OF LEDGER
  53. 53. Compound or Combined Journal Entry is one where more than one transactions are recorded by passing only one journal entry instead of passing several journal entries. Since every debit must have the corresponding equal amount of credit, special care must be taken in posting the compound journal entry, where there may be only one debit aspect but many corresponding credit aspects of equal value or vise versa. The posting of such transactions is done in the same way as already explained. Posting of Compound Journal Entries
  54. 54. Journal Illustration 3 : Jan. 12, 2003, Cash sales Rs.10,000, Cash received from Kannan Rs.5,000 and commission earned Rs.2,500.

×