Note on Ledger Account

  • Note
  • Things to remember
  • Exercise
  • Quiz

Procedures of preparing ledger account

Posting the account from journal to the ledger, the rules of journalism should be followed. Account debited in a journal should be also debited and account credited should be also credited in the ledger account. The process of preparing the ledger account can be summarized as follows:

1. Mention the name of account at the top center.

2. Post the account on its debit side if it has been debited in the journal. The first four columns on debit side record the information as follows:

  • Date: It records the date of the transaction.
  • Particular: It records the name of reference account after writing the word 'To'. The referenced account is one, which has been credited in the journal.
  • Journal folio(JF): It records the page number of the journal from which the account is being posted.
  • Amount: It records the amount of the account being debited.

3. Post the account on its credit side if it has been credited in the journal. The last four column on credit side record the information as follows:

  • Date: It records the date of the transaction.
  • Particulars:It records the name of reference account after writing the word 'By'. The referenced account is one, which has been debited in the journal.
  • Journal folio (JF): It records the page number of the journal from which the account is being posted.
  • Amount: It records the amount of the account being credited.

sff

Example 1:

The following are the transactions of Riddhi for the week of Baisakh:

Marga 1: Goods of Rs.10,000 purchased from Siddhi.

Marga 3: Withdrew cash of Rs.7000 from the bank.

Marga 5: Cash of Rs. 5000 paid to siddhi.

Marga 7: Cash sales made for Rs. 500.

Required

a) Journal entries

b) Ledger account

Journal Entries

Date Particular L.F Debit Rs. Credit Rs.
Marga 1 Purchase a/c.............................Dr. 10,000
To Siddhi's a/c 10,000
(Being goods purchased from Siddhi)
Marga 3 Cash a/c....................................Dr. 7000
To Bank a/c 7000
(Being cash withdrew from bank for office use)
Marga 5 Siddhi's a/c................................Dr. 5000
To Cash a/c 5000
(Being cash paid to siddhi)
Marga 7 Cash a/c...................................Dr. 500
To Sales a/c 500
(Being cash sales)
Total 22,500 22,500

As per journal entries shown above the following accounts are required to open in the ledger:

  1. Purchase a/c
  2. Siddhi's a/c
  3. Cash a/c
  4. Bank a/c
  5. Sales a/c

Purchase Account

Date Particular JF Amount Date Particular JF Amount
Marga 1 To Siddhi's a/c 10,000 Marga 30 By balance c/d 10,000
10,000 10,000
Poush 1 To balance b/d 10,000

Siddhi's Account

Date Particular JF Amount Date Particular JF Amount
Marga 5 To Cash a/c 5000 Marga 1 By Purchase a/c 5000
5000 5000

Cash Account

Date Particular JF Amount Date Particular JF Amount

Marga 3

Marga 7

To Bank a/c

To Sales a/c

7000

500

Marga 5

Marga 30

By Siddhi's a/c

By Balance c/d

5000

2500

7500

7500
Poush 1 To Balance b/d 2500

Bank Account

Date Particular JF Amount Date Particular JF Amount
Marga 30 To Balance c/d 7000 Marga 3 By Cash a/c 7000
7000 7000
Poush 1 By Balance b/d 7000

Sales Account

Date Particular JF Amount Date Particular JF Amount
Marga 30 To Balance c/d 500 Marga 7 By Cash a/c 500
500 500
Poush 1 By Balance b/d 500

  • Account debited in a journal should be also debited and account credited should be also credited in the ledger account. 
.

Very Short Questions

Posting the account from journal to the ledger, the rules of journalising should be followed. Account debited in a journal should be also debited and account credit also credit in the ledger account. The process of preparing the ledger account can be summarized as follows:

1. Mention the name of account at the top center.

2. Post the account on its debit side if it has been debited in the journal. The first four columns on debit side record the information as follows:

  • Date:It records the date of the transaction.
  • Particular:It records the name of reference account after writing the word 'To'. The reference account is one, which has been credited in the journal.
  • Journal folio (JF): It records the page number of the journal from which the account is being posted.
  • Amount: It records the amount of the account being debited.

3. Post the account on its credit side if it has been credited in the journal. The last four column on credit side record the information as follows:

  • Date: It records the date of the transaction.
  • Particulars:It records the name of reference account after writing the word 'By'. The referenced account is one, which has been debited in the journal.
  • Journal folio (JF): It records the page number of the journal from which the account is being posted.
  • Amount:It records the amount of the account being credited.

Journal entries

Date

Particulars

LF

Debit Rs.

Credit Rs.

a).

Cash a/c ……………………………Dr.

60,000

To capital a/c

60,000

(Being business started with cash.)

b).

Bank a/c …………………Dr.

50,000

To cash a/c

50,000

(Being cash deposited into bank.)

c).

Purchase a/c ……………….Dr.

10,000

To Bank a/c

3,000

To Ramesh’s a/c

7,000

(Being goods purchased from Ramesh and paid through cheque.)

d).

Cash a/c………………………..Dr.

800

To sales a/c

800

(Being cash sales made.)

e).

Salary a/c ………………………Dr.

4,000

Rent a/c…………………………Dr.

2,000

To cash a/c

6,000

Being paid for salary and rent by cheque.)

f).

Cash a/c…………………………..Dr.

2,500

To commission received a/c

2,500

(Being commission received.)

Date

Particulars

JF

Amount

Date

Particulars

JF

Amount

To capital a/c

60,000

By bank a/c

50,000

To sales a/c

800

By salary a/c

4,000

To commission received a/c

2,500

By rent a/c

2,000

By balance c/d

7,300

63,300

63,300

To balance b/d

7,300

Dr.

Bank a/c

Cr.

Date

Particulars

JF

Amount

Date

Particulars

JF

Amount

To cash a/c

50,000

By purchase a/c

3,000

By balance c/d

47,000

50,000

50,000

To balance b/d

47,000

Journal entries

Date

Particulars

LF

Debit Rs.

Credit Rs.

a).

Furniture a/c……………………………Dr.

7,000

To banka/c

2,000

To Fine Furniture Center's a/c

5,000

(Being office furniture purchased through cheque and paid in part.)

b).

Casha/c …………………Dr.

2,300

Discount a/c …………………Dr

300

ToMr. Jatan Joshi's a/c

2,500

(Being cash received from Mr.Jatan Joshi and alloed discount.)

c).

Purchase a/c ……………….Dr.

700

To casha/c

700

(Being cash purchases made.)

d).

Banka/c………………………..Dr.

2,500

To rent receiveda/c

2,500

(Being rent received through cheque.)

e).

Interesta/c ………………………Dr.

600

To casha/c

600

(Being interest paid.)

Date

Particulars

JF

Amount

Date

Particulars

JF

Amount

To Mr. Jatan Joshi's a/c

60,000

By purchase a/c

700

By interest a/c

600

By balance c/d

58,700

60,000

60,000

To balance b/d

58,700

Date

Particulars

JF

Amount

Date

Particulars

JF

Amount

To cash a/c

700

By balance c/d

700

700

700

To balance b/d

700

Journal Entries

Date

Particulars

LF

Debit Rs.

Credit Rs.

a).

Cash a/c………………………..Dr.

60,000

To capital a/c

60,000

(Being business started with cash.)

b).

Purchase a/c………………………..Dr.

7,000

To Sandesh’s a/c

7,000

(Being goods purchased from Sandesh.)

c).

Cash a/c………………………..Dr.

7,000

To sales a/c

7,000

(Being cash sales made.)

d).

Bikash a/c………………………..Dr.

2,500

To sales a/c

2,500

(Being goods sold to Bikash.)

e).

Cash a/c ………………………..Dr.

2,500

To Bikash’s a/c

2,500

(Being cash received from Bikash.)

Dr.

Cash a/c

Cr.

Date

Particulars

JF

Amount

Date

Particulars

JF

Amount

To capital a/c

60,000

By balance c/d

69,500

To sales a/c

7,000

To Biksah’s a/c

2,500

69,500

69,500

To balance b/d

69,500

Dr.

Sales a/c

Cr.

Date

Particulars

JF

Amount

Date

Particulars

JF

Amount

To balance c/d

9,500

By cash a/c

7,000

By Bikash’s a/c

2,500

9,500

9,500

By balance b/d

9,500

Journal Entries

Date

Particulars

LF

Debit Rs.

Credit Rs.

a).

Bank a/c……………………….Dr.

1,00,000

To capital a/c

1,00,000

(Being business started with bank balance.)

b).

Purchase a/c……………………….Dr.

10,000

To Suvam’s a/c

4,000

To bank a/c

6,000

(Being goods purchased from Suvam and paid by cheque in part.)

c).

Cash a/c……………………….Dr.

5,000

To sales a/c

5,000

(Being cash sales made.)

d).

Interest a/c……………………….Dr.

3,000

To cash a/c

3,000

(Being interest paid.)

e).

Cash a/c……………………….Dr.

1,000

To sales a/c

1,000

(Being goods sold to Binayak on cash.)

f).

Binayak’s a/c……………………….Dr.

500

To purchase return a/c

500

(Being goods returned by Binayak.)

Dr.

Cash a/c

Cr.

Date

Particulars

JF

Amount

Date

Particulars

JF

Amount

To sales a/c

5,000

By interest a/c

3,000

To sales a/c

1,000

By balance c/d

3,000

6,000

6,000

To balance b/d

3,000

Dr.

Bank a/c

Cr.

Date

Particulars

JF

Amount

Date

Particulars

JF

Amount

To capital a/c

1,00,000

By purchase a/c

6,000

By balance c/d

94,000

1,00,000

1,00,000

To balance b/d

94,000

0%
  • While posting the account from journal to the ledger, the rules of ______ should be followed.

    closing


    balancing


    posting


    journalising


  • The name of account should be mentioned at the ______.

    top-center


    bottom-center


    top-left


    top-right


  • What is the full form of JF?

    Journal Folio


    Journal Fax


    Journal Filler


    Journal Files


  • Account debited in a journal should be ______ in the ledger account.

    none of the options are correct


    debited


    credited


    not be posted


  • Account credited in the journal should be ______ in the ledger account.

    not be posted


    credited


    debited


    none of the options are correct


  • You scored /5


    Take test again

DISCUSSIONS ABOUT THIS NOTE

You must login to reply

Forum Time Replies Report


You must login to reply

ledger


You must login to reply

Jeena

Transcation for Received cash discount


You must login to reply