Ledger Account

Posting the account from journal to ledger, the rules of journalising should be followed. This note present the some journal entries and ledger entries with detail.

Summary

Posting the account from journal to ledger, the rules of journalising should be followed. This note present the some journal entries and ledger entries with detail.

Things to Remember

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

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Ledger Account

Ledger Account

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.

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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

Lesson

Ledger

Subject

Accountancy

Grade

Grade 9

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