1. LEDGER & TRIAL BALANCE
DEFINE LEDGER.
The book in which individual record of each account is maintained.
or
The book in which all the business transactions are finally recorded in the concerned account in a
summarized and classified form is called ledger
DEFINE POSTING.
The process of recording business transaction in ledger called posting.
EXPLAIN THE TERM BALANCE.
The difference between the two sides of an account is called balance.
EXPLAIN DEBIT BALANCE.
If the debit side of an account is heavier. Its balance is known as debit balance.
EXPLAIN CREDIT BALANCE.
If the credit side of an account is heavier. Its balance is known as credit balance.
EXPLAIN ZERO BALANCE.
If the two sides of an account are equal then it will be called zero balance.
WHAT ARE THE KINDS OF LEDGER?
There are three kinds of ledger:
 Debtor ledger
 Creditor ledger
 General ledger
DEFINE DEBTOR LEDGER.
It contains the accounts of all the customers (debtors) to whom goods have been sold on credit.
DEFINE CREDITOR LEDGER.
It contains the accounts of all the suppliers (creditor) from whom, good have been purchased on credit.
DEFINE GENERAL LEDGER.
It may contain the records of real and nominal account items.
DEFINE TRAIL BALANCE.
A trial balance is a list of debit and credit balance of all ledger accounts.
It has two purposes:
 Check the accuracy of accounts
 Prepare a summary of accounts
DEFINE FOLIOING.
When the page number of ledger is recorded in ledger folio column of journal & page number of journal
is recorded in journal folio column of ledger is known as folioing
PUNJAB COLLEGE OF COMMERCE PROF. HAFIZ MUHAMMAD NAWAZ PAGE 1

2. LEDGER & TRIAL BALANCE
EXPLAIN AND DRAW ACCOUNTING CYCLE.
It refers to a complete sequence of accounting procedures which are required to be repeated in same order
during each accounting period.
TRANSACTION
FINAL
JOURNAL
ACCOUNT
TRIAL
LEDGER
BALANCE
PUNJAB COLLEGE OF COMMERCE PROF. HAFIZ MUHAMMAD NAWAZ PAGE 2