The rules of journalizing should be obeyed while posting the account from journal to ledger. Account debited in a journal should be also debited and account credited should also be credited in the ledger account. The process of preparing the ledger account can be summarized as below:
A. Mention the name of account at the top center.
B. 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:
C. Post the account on its credit side if it has been credited in the journal. The last four columns on credit side record the information as follows:
Example:
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:
Dr. | Purchase Account | Cr. | |||||
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 |
Dr. | Siddhi's Account | Cr. | |||||
Date | Particular | JF | Amount | Date | Particular | JF | Amount |
Marga 5 | To Cash a/c | 5000 | Marga 1 | By Purchase a/c | 5000 | ||
5000 | 5000 | ||||||
Dr. | Cash Account | Cr. | |||||
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 |
Dr. | Bank Account | Cr. | |||||
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 |
Dr. | Sales Account | Cr. | |||||
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 |
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:
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:
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.) |
Cash a/c
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 |
Bank a/c
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 Bank a/c | 2,000 | |||
To Fine Furniture a/c | 5,000 | |||
(Being office furniture purchased through cheque and paid in part.) | ||||
b). | Cash a/c ……………………..Dr. | 2,300 | ||
Discount a/c…………………..Dr. | 200 | |||
To Mr. Jatan Joshi’s a/c | 2,500 | |||
(Being cash received from Mr. Jatan Joshi and allowed discount.) | ||||
c). | Purchase a/c……………..Dr. | 700 | ||
To cash a/c | 700 | |||
(Being cash purchases made.) | ||||
d). | Bank a/c …………………….Dr. | 2,500 | ||
To rent received a/c | 2,500 | |||
(Being rent received through cheque.) | ||||
e). | Interest a/c………………………Dr. | 600 | ||
To cash a/c | 600 | |||
(Being paid for interest.) |
Cash a/c
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 |
Purchase a/c
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 |
While posting the account from journal to the ledger, the rules of ______ should be followed.
closing
posting
journalising
balancing
The name of account should be mentioned at the ______.
top-right
top-center
bottom-center
top-left
What is the full form of JF?
Journal Fax
Journal Folio
Journal Filler
Journal Files
Account debited in a journal should be ______ in the ledger account.
not be posted
none of the options are correct
debited
credited
Account credited in the journal should be ______ in the ledger account.
not be posted
debited
none of the options are correct
credited
ASK ANY QUESTION ON Procedures of Preparing Ledger Account
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