This document provides information about ledgers in accounting. It defines a ledger as the book that contains a classified and permanent record of all business transactions. Key points include: - Ledgers are used to know account balances, provide information about each account, prepare trial balances, and determine amounts due from customers and owed to suppliers. - All accounts are opened on separate ledger pages. Trading, profit and loss accounts and balance sheets can be prepared using ledger balances. - Ledgers contain permanent records of transactions while journals contain initial recordings with narrative details. Ledgers are checked for accuracy via trial balances.

1. Prof. S.N.Gaikwad
Vice Chairman
Prof.S.R. Tajane
Faculty Member

3. The books w h i c h
contains a classified &
permanent record of
a l l transactions of a
business is called
“LEDGER”.

4. ☺It is important for knowing the balances
of each account.
☺It gives short information about each
account.
☺It is needed for making trial balance.
☺It helps in knowing how much amount is
due from each customer and how much
amount the firm has to pay to each
supplier etc.
☺A trading and profit & loss account can
only be prepared with the help of ledger
balances.

5. ☺All accounts are opened on separate pages in
this book.
☺A trading and profit & loss account can only
be prepared with the help of ledger balances.
☺A balance sheet can also be prepared with the
help of ledger balances which show the
financial position of the business.
☺Any type of information relating to the
business can be easily obtained from the
ledger.

6. S.
no.
Basis Journal Ledger
1.
Meaning
Journal is a book of original
entry in which the transaction
are recorded first of all, as and
when they take place.
The books which contains a
classified & permanent record of
all transactions of a business is
called ledger.
2.
Full detail of
transaction
Recorded as narration. Not recorded.
3. Process of
recording entries
Named as Journalising. Named as Posting.
4.
Accuracy Not tested. Tested by preparing Trial balance.
5. Order of
recording
Chronological order
(datewise)
Analytical order.

7. Date Particulars
J.
F.
Amount
₹
Date Particulars
J.F
.
Amount
₹
Dr
. Cr
.

8. ☺All transaction relating to an account should be
entered at one place.
☺ The word `To’ used before the accounts which appear
on the debit side of an account. Similarly, the word
`By’ used before the accounts which appear on the
credit side of an account.
☺ It is not necessary to write the word ‘A/c’ after the
personal accounts.
☺ Similar amount which has been posted on the debit
side of an account should also be posted on the credit
side of another account.
☺ If an account has been debited(or credited) in journal
entry, should posted on debit(or credit)side of ledger.
In particular column, the name of other account which
has been credited(or debited) for journal entry should

9. ☺Closing of personal account – the word ‘By
balance c/d’ or ‘To balance c/d’ used for
closing the personal account.
☺Closing of real account - the word ‘By
balance c/d’ or ‘To balance c/d’ used for
closing the real account.
☺Closing of nominal account – these accounts
not require to be balancing.

11. Q 1. from the following journal entries . Prepare the ledger accounts :-
Journal entries
Date Particulars L.F.
Dr. Amount
₹
Cr. Amount
₹
I
Cash A/c
ToSales A/c
(Being goods sold for cash)
Dr. 5,000
5,000
II
Furniture A/c
ToCash A/c
(Being furniture purchased for cash)
Dr. 10,000
10,000
III
Purchases A/c
To Govind
(Being goods purchase on credit)
Dr. 5,000
5,000
IV
Purchases A/c
ToCash A/c
(Being goods purchase on cash)
Dr. 7,000
7,000
V
Mohan
ToSales A/c
(Being goods sold on credit)
Dr. 15,000
15,000
VI
Cash A/c
ToInterestA/c
(Interest received)
Dr. 1,000
1,000

12. Sol….
Date Particulars
J. Amount
Date Particulars
J. Amount
Dr. Cash A/c Cr.
F. ₹ F. ₹
ToSales A/c 5,000 By Furniture A/c 10,000
ToInterest A/c 1,000 By purchase A/c 7,000
Tobalance c/d 11,000
17,000 17,000
Dr. Sales A/c Cr.
Date Particulars
J.
F.
Amount
₹
Date Particulars
J.
F.
Amount
₹
By Cash A/c
By Mohan
5,000
15,000
Date Particulars
J.
F.
Amount
₹
Date Particulars
J.
F.
Amount
₹
Tocash A/c 10,000 By balance c/d 10,000
10,000 10,000
Dr. FurnitureA/c Cr.

13. Date Particulars J.F.
Amount
₹
Date Particulars J.F.
Amount
₹
ToGovind
ToCash A/c
5,000
7,000
Continue…….
Purchases A/c Cr
.
Date Particulars J.F.
Amount
₹
Date Particulars
J.
F.
Amount
₹
Tobalance c/d 5,000 By Purchases A/c 5,000
5,000 5,000
Dr
. Govind’s A/c Cr
.
Date Particulars J.F.
Amount
₹
Date Particulars
J.
F.
Amount
₹
ToSales A/c 15,000 By balance c/d 15,000
15,000 15,000
Dr. Mohan’s A/c Cr.
Dr
.

14. Continue…..
Date Particulars
J.
F.
Amount
₹
Date Particulars
J.
F.
Amount
₹
By Cash A/c 1,000
Dr
. Interest A/c Cr
.

15. Q 2. Prepare the ledger accounts from the following entries :-
Date Particulars L.F.
Dr. Amount
₹
Cr. Amount
₹
2017
Apr
.1
Cash A/c Dr
.
ToCapital A/c
(Being Ram started business with cash)
1,00,000
1,00,000
Apr
.3
Dr
.
Furniture A/c To
Cash A/c
(Being furniture purchased for cash)
20,000
20,000
Apr
.8
Dr
.
Purchases A/c ToVishal
ToCash A/c
(Being purchase is made in cash &
credit)
20,000
15,000
5,000
Apr
.10
Dr.
Dr
.
Cash A/c Sita
A/c
ToSales A/c
(Being goods sold on cash or credit)
12,000
10,000
22,000
Apr
.15
Dr
.
Drawings A/c To
Cash A/c
(Cash withdraw by proprietor for
personal use.)
5,000
5,000

16. Sol…..
Date
Particulars J.F.
Amount
₹
Date Particulars J.F.
Amount
₹
2017
Apr.1
ToCapital A/c 1,00,000 2017
Apr.3
By Furniture A/c 20,000
Apr.10 ToSales A/c 12,000 Apr.8 By Purchases A/c 5,000
Apr.15 By Drawings A/c 5,000
Apr.30 By Balance c/d 82,000
1,12,000 1,12,000
Dr
. Cash A/c Cr
.
Date Particulars J.F.
Amount
₹
Date Particulars J.F.
Amount
₹
2017 Tobalance c/d 1,00,000 2017 By Cash A/c 1,00,000
Apr. Apr
.1
10
1,00,000 1,00,000
Dr
. Capital A/c Cr
.

17. Continue…….
Date Particulars
J.F
.
Amount
₹
Date Particulars
J.F
.
Amount
₹
2017
Apr.8
To Vishal 15,000
Apr.8 ToCash A/c 5,000
Dr
. Furniture A/c Cr
.
Date Particulars
J.F
.
Amount
₹
Date Particulars
J.F
.
Amount
₹
2017
Apr.3
ToCash A/c 20,000 2017
Apr.30
By balance c/d 20,000
20,000 20,000
Dr
. Purchases A/c Cr
.
Date Particulars
J.
F.
Amount
₹
Date Particulars
J.
F.
Amount
₹
2017
Apr.8
Tobalance c/d 15,000 2017
Apr.30
By purchases 15,000
15,000 15,000
Dr
. Vishal’s A/c Cr
.

18. Continue…….
Date Particulars J.F.
Amount
₹
Date Particulars J.F.
Amount
₹
2017
Apr.10
Tosales A/c 10,000 2017
Apr.30
By Balance c/d 10,000
10,000 10,000
Dr
. Sita’s A/c Cr
.
Date Particulars
J.F Amount
. ₹
Date Particulars
By Cash A/c
2017
Apr
.10
Apr.10 By Sita
J.F Amount
. ₹
12,000
10,000
22,000 22,000
Dr
. Sales A/c Cr
.
Date Particulars
J.
F.
Amount
₹
Date Particulars J.F.
Amount
₹
2017
Apr.15
Tocash A/c 5,000 2017
Apr.30
By balance c/d 5,000
5,000 5,000
Dr
. Drawings A/c Cr
.

20. Prof. Satish R. Tajane
(M.Com, GDC&A,CMA-Inter,Ph.D. Appear)
GST & Income Tax
Consultant