Ledger: Objectives of ledger/Forms of ledger/Ledger Account Practice/ Analytical Exercise: Journal & Ledger
Ledger
Ledger is classified and summarized form of accounting .Ledger is the principal book of accounting . At the end of accounting period ledger services as authorized source of data for preparation of a firms financial reports.
Objectives of ledger
- Provide financial information in classified form
- Help to prepare trial balance
- Help to show the financial information of a specific nature of transaction
- Help to prepare final accounts of a organization.
Forms of ledger
- T shape
- Balance Shape
Format
Dr. Cr.
Date | Particulars | Jf | Amt | Date | Particulars | Jf | Amt |
Question
Journalize the following transactions and post them into ledger account.
jan 3 : Business started with cash Rs. 50,000
jan 5 : Cash Rs. 30,000 deposited into bank.
jan 8 : Cash purchase made for Rs. 5,000
jan 21 : Machinery sold for Rs. 10,000
jan 23 : Machinery for Rs. 15,000 purchased and amount paid by cheque
jan 30 : Cash Rs. 2,000 drawn from bank .
Journal Entries
Date | Particulars | l.f | Dr. amt | Cr. amt |
Jan 3 | Cash a/c Dr.
To capital a/c (Being business started with cash) |
50,000 |
50,000 |
|
Jan 5 | Bank a/c Dr.
To Cash a/c (Being cash deposited into bank) |
30,000 |
30,000 |
|
Jan 8 | Purchase a/c Dr.
To cash a/c (Being cash purchased) |
5,000 |
5,000 |
|
Jan21 | Cash a/c Dr.
To machinery a/c (Being machinery sold) |
10,000 |
10,000 |
|
Jan 23 | Machinery a/c Dr.
To bank a/c (Being machinery purchase) |
15,000 |
15,000 |
|
Jan 30 | Cash a/c Dr.
To bank a/c (Being cash drawn) |
2,000 |
2,000
|
Cash Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Jan 3
Jan 21 Jan 30
Feb 1 |
To, capital a/c
To, machinery a/c To, Bank a/c
To,balance b/d |
50,000
10,000 2,000
62,000 27,000 |
Jan 5
Jan 11 Jan 31 |
By,bank a/c
By, purchase a/c By,balance c/d |
30,000
5,000 27,000
62,000 |
Capital Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Jan31 | To, balance b/d | 50,000
50,000 |
Jan 3
Feb 1 |
By, Cash a\c
By, balance c/d |
50,000
50,000
50,000 |
Bank Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Jan 5
Feb 1 |
To, Cash a/c
To balance b/d |
30,000
30,000 13,000 |
Jan 23
Jan 30 Jan 31 |
By, Machinery a/c
By, Cash a/c By balance c/d |
15,000
2,000 13,000
30,000 |
Purchase Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Jan 8
Feb 1 |
To, cash a/c
To ,balance b/d |
5,000
5,000 5,000 |
Jan 31 | By balance c\d | 5,000
5,000 |
Machinery Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Jan 23
Feb 1 |
To Bank a/c
To, balance b/d |
15,000
15,000 5,000 |
Jan 21
Jan 31 |
By, Cash a/c
By balance c/d |
10,000
5,000
15,000 |
Question
april 3 : Business started with cash Rs. 1,00,000 and bank balance Rs. 50,000
april 8 : Goods purchased for Rs. 20,000 of which Rs. 15,000 paid by cash and rest by cheque.
april 9 : furniture sold for Rs. 30,500 to Ram .
april 15 : Furniture purchased for Rs. 50,000 from gopal and payment made by cheque for Rs. 30,000 as partial payment .
april 21 : A cheque of Rs. 30,000 issued to ram for full settled.
Journal Entries
Date | Particulars | l.f | Dr. amt | Cr. amt |
April 3 | Cash a/c Dr.
Bank a/c Dr. To capital a/c (being business started with cash and bank balance) |
10,000
50,000 |
1,50,000 |
|
April 8 | Purchase a/c Dr.
To cash a/c To Bank a/c (Being goods purchased ) |
20,000 |
15,000 5,000 |
|
April 9 | Ram a/c Dr.
To Furniture a/c (Being furniture sold) |
30,500 |
30,500 |
|
April 15 | Furniture a/c Dr.
To bank a/c To Gopal’s a/c (Being furniture purchased and paid partially) |
50,000 |
30,000 20,000 |
|
April 21 | Ram a/c Dr.
To bank a/c To discount a/c (Being cheque issued to Ram) |
30,500 |
30,000 500 |
Cash Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
3
May 1 |
To Capital a/c
To balance b/d
|
1,00,000
1,00,000
85,000 |
8
31 |
By purchase a/c
By balance c/d |
1,50,000
85,000
1,00,000 |
Bank Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Apr 3
30 |
To Capital a/c
To balance c/d |
50,000
15,000
65,000 |
Apr 8
Apr15 Apr 25
|
By purchase a/c
By furniture a/c By ram’s a/c
By balance b/d |
5,000
30,000 30,000
65000 15,000 |
Capital Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Apr30 | To balance c/d | 1,50,000
1,50,000 |
Apr3
Apr3 |
By cash a/c
By bank a/c
By balance b/d |
1,00,000
50,000
1,50,000 1,50,000 |
Purchase Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Apr9
May1 |
To cash a/c
To bank a/c
To balance b/d |
15,000
5,000
20,000
20,000 |
Apr30 | By balance c/d | 20,000
20,000 |
Furniture Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Apr15
Apr15
May 1 |
To bank a/c
To Gopal a/c
To balance b/d |
30,000
20,000
50,000
19,500 |
Apr13
Apr30 |
By ram’s a/c
By balance c/d |
30,500
19,500
50,000 |
Ram’s Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Apr13
Apr25 Apr25
May 1 |
To furniture a/c
To bank a/c To discount a/c
To balance b/d |
30,500
30,000 500
61,000 61,000 |
Apr30 | By balance c\d | 61,000
61,000 |
Gopal’s Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Apr30 | To balance c/d | 20,000
20,000 |
Apr15
May1 |
By furniture a/c
By balance b/d |
20,000
20,000
20,000 |
Discount Account
Dr. Cr.
Date | Particulars | jf | Amt | Date | Particulars | jf | Amt |
Apr30 | To balance c/d | 500
500 |
Apr25
May 1 |
By Ram’s a/c
By balance b\d |
500
500 500 |
Analytical Exercise
Journal & Ledger
2076-1-1 Ganesh started business with cash Rs. 2,00,000
2076-1-5 Purchased goods for Rs. 80,000
2076-1-10 Cash Deposited Rs. 50,000 into bank.
2076-1-15 Again cash purchased Rs. 20,000
2076-1-20 Cash withdrew from bank Rs. 5,000
2076-1-30 Staff salary paid Rs. 20,000 by cheque.
Journal Entries
Date | Particulars | l.f | Dr. amt | Cr. amt | ||
1-1 | Cash a/c Dr.
To capital a/c (Being business started with cash) |
2,00,000
|
2,00,000
|
|||
1-5 | Purchase a/c Dr.
To cash a/c (Being goods purchased ) |
80,000 |
80,000
|
|||
1-10 | Bank a/c Dr.
To Cash a/c (Being cash deposited into bank) |
50,000 |
50,000 |
|||
1-15 | Purchase a/c Dr.
To Cash a/c (Being Cash purchased ) |
20,000 |
20,000
|
|||
1-20 | Cash a/c Dr.
To bank a/c (Being cash drawn from bank) |
5,000 |
5,000
|
|||
1-30 | Salary a/c Dr.
To Bank a/c ( Being salary paid by cheque) |
20,000 |
20,000 |
|||
Total | 3,75,000 | 3,75,000 | ||||
Cash Account
Date | Particular | J. f | Amount | Date | Particular | J. f | Amount |
1-1 | To, capital A/c | 2,00,000 | 1-5 | By, purchase A/c | 80,000 | ||
1-20 | To, balance b/d | 5,000 | 1-10 | By, bank A/c | 50,000 | ||
1-15 | By, purchase A/c | 20,000 | |||||
1-30 | By, balance A/c | 55,000 | |||||
2,00,500 | 2,00,000 | ||||||
2-1 | To, balance b/d | 55,000 |
Capital Account
Date | Particular | J.f | Amount | Date | Particular | J.f | Amount |
1-30 | To, balance C/d | 2,00,000 | 1-1
|
By, cash A/c
|
2,00,000 | ||
2,00,000 | 2,00,000 | ||||||
2-1 | By, balance b/d | 2,00,000 |
Purchase Account
Date | Particular | J.f | Amount | Date | Particular | J.f | Amount |
1-5 | to, cash A/c | 80,000 | 1-30 | By, balance C/d | 1,00,000 | ||
1-15 | To, cash A/c | 20,000 | |||||
1,00,000 | 1,00,000 | ||||||
2-1 | To, balance b/d | 1,00,000 |
The following transactions of Mrs. Radha are: –
- commencement of business with Rs. 1,25,000
- bought goods from Mr. sabin for Rs. 25,000 by making partial payment of Rs. 15,000
- Sold goods for Rs. 45,000 to Mr. sagun receiving partial payment of Rs. 25,000.
- Furniture costing Rs. 1,500 was sold for Rs. 8,000.
- Paid Rs. 9,500 to Mr. sabin in full settlement of his account.
Journal Entries
Date | Particular | I.f | Dr. amount | Cr. amount |
1. | Cash A/c Dr | 1,25,000 | ||
To capital A/c | 1,25,000 | |||
{being commencement to business} | ||||
2. | Purchase A/c Dr. | 25,000 | ||
To sabin’s A/c | 10,000. | |||
To cash A/c | 15,000 | |||
{being goods bought and paid partially} | ||||
3. | Cash A/c Dr. | 25,000 | ||
Sagun A/c Dr. | 10,000 | |||
To sales a/c | 45,000 |
Ledger without Journal
Questions no. 1. From the following transactions prepare Ram’s account.
May-1. Opening debit balance of Ram’s A/c Rs. 30,000.
May-5. Goods sold to ram for Rs. 5,000.
May-9. Machinery purchased from ram for Rs. 10,000.
May-15. Goods returned by ram for Rs. 1,000.
May-21. A cheque of Rs. 5000 issued to ram.
May-23. Cash purchase made from ram Rs. 2,000
May-29. Sold to gopal for Rs. 3,000
Ram’s account
Date | Particular | J.f | Amount | Date | Particular | J.f | Amount |
5-1 | To, balance b/d | 30,000. | 5-9 | By, Machinery A/c | 10,000. | ||
5-5 | To sales A/c | 5,000. | 5-15 | By, sales return A/c | 1,000. | ||
5-21 | To, bank A/c | 5,000. | 5-31. | By, balance c/d | 29,000. | ||
40,000 | 40,000. | ||||||
To, balance b/d | 29,000 |
Prepare Gita’s Account
- Opening credit balance of gita’s A/c Rs. 35,000.
- Furniture purchased from gita Rs. 3,000.
- Goods sold to gita’s for Rs. 2,000.
- Cash received from gita Rs. 3,000.
- Cash sales made to gita Rs. 10,000.
Gita’s Account
Date | Particular | J.f | Amount | Date | Particular | J.f | Amount |
1-3 | To, sales A/c | 3,000 | 1-1 | By, balance b/d | 35,000 | ||
1-4 | To, purchase return A/c | 2,000 | 1-2 | By, furniture A/c | 10,000. | ||
1-31. | To, balance c/d | 43,000 | 1-5 | By, cash a/c | 3,000. | ||
48,000 | 48,000 | ||||||
2-1 | By balance b/d | 43,000 |
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