LEDGER

ACCOUNTING:
Accounting is an activity concerned with the recording of financial data relating to
business operations in a significant and orderly manner.
Rules of different accounts:

PERSONAL ACCOUNT:
“Debit the receiver and credit the giver”
REAL ACCOUNT:
“Debit what comes in and credit what goes out”
NOMINAL ACCOUNT:
“Debit all expenses and losses and credit all incomes and gains”

LEDGER:
Ledger is a book which contains various accounts. In other words , ledger is a set of
accounts . It contains all accounts of business enterprise whether real, nominal, or
personal.
RULES REGARDING THE POSTING:
The following rules should be observed while posting the
transactions in the ledger from the journal.
1. Separate accounts should be opened in the ledger for posting transactions relating to
different accounts recorded in the journal.
E.g.: separate accounts may be opened for sales, cash account, purchases etc…
2. The concerned account which has been debited in the ledger. However a reference
should be made of the other account which has been credited in the journal.
3. The concerned account which has been credited in the journal should also be credited
in the ledger, but reference should be of given account, which has been debited in the
journal.
JOURNALISE THE FOLLOWING TRANSACTIONS AND POST THEM IN
LEDGER

DATE PARTICULARS AMOUNT IN RS

01/01/2000 Started business with cash 40000

02/01/2000 Purchased goods for cash 8000
03/01/2000 Sold goods for cash 7000
05/01/2000 Received cash from murthy 1000
18/01/2000 Cash paid to murthy 500
21/01/2000 Purchased goods from kiran 14000
31/01/2000 Goods sold to kareem 6000
JOURNAL OF MR.PRABHU

DATE PARTICULARS LF DEBIT IN CREDIT IN

NO RUPEES RUPEES
01/01/2000 .cash a/c …………………….Dr 40000
To Prabhu’s capital a/c 40000

02/01/2000 Purchases a/c…………………Dr 8000

To cash a/c 8000

03/01/2000 Cash a/c ………………………Dr 7000

To sales a/c 7000

05/01/2000 Cash a/c ……………………..Dr 1000

To Murthy a/c 1000

18/01/2000 Murthy a/c…………………..Dr 500

To cash a/c 500

21/01/2000 Purchases a/c…………………Dr 14000

To Kiran a/c 14000

31/01/2000 Karim a/c……………………..Dr 6000

To sales a/c 6000
POST THEM INTO LEDGER

Dr CASH A/C Cr
DATE PARTICULA JF DEBIT IN DATE PARTICULAR JF CREDI
RS N RS S N T IN RS
O O
01/01/00 To prabhu’s 40000 02/01/00 By purchases 8000
capital a/c a/c
03/01/00 To sales a/c 7000 18/01/00 By murthy a/c 500
05/01/00 To cash a/c 1000 31/01/00 By balance c/d 39500

48000 48000
01/02/00 To balance b/d 39500

Dr PRABHU’S CAPITAL A/C Cr

JF DEBI JF CREDI
DATE PARTICULA N T IN DATE PARTICULAR N T IN RS
RS O RS S O
31/01/00 To balance c/d 40000 01/01/00 By cash a/c 40000

40000
40000 01/02/00 By balance b/d 40000
Dr PURCHASES A/C Cr
DATE PARTICULA JF DEBI DATE PARTICULAR JF CREDI
RS N T IN S N T IN RS
O RS O
02/01/00 To cash a/c 8000 31/01/00 By balance c/d 22000
21/01/00 To kiran a/c 14000

01/02/00 To balance b/d 22000 22000

SALES A/C

DATE PARTICULA JF DEBI DATE PARTICULAR JF CREDI

RS N T IN S N T IN RS
O RS O
31/01/00 To balance c/d 13000 03/01/00 by cash a/c 7000
31/01/00 by karim a/c 6000

01/02/00 to balance b/d 13000

13000
Dr MURTHY A/C Cr
DATE PARTICULAR JF DEBI DATE PARTICULAR JF CREDI
S N T IN S N T IN RS
O RS O
18/01/.00 To cash a/c 500 05/01/00 By cash a/c 1000
31/01/00 To balance c/d 500 01/02/00

1000 By balance b/d 1000

Dr KIRAN A/C Cr

DATE PARTICULA JF DEBI DATE PARTICULAR JF CREDI

RS N T IN S N T IN RS
O RS O
31/01/00 To balance c/d 14000 21/01/00 By purchases 14000
01/02/00 a/c

14000 By balance b/d 14000

 Dr KARIM A/C Cr

DATE PARTICULA JF DEBI DATE PARTICULAR JF CREDI

RS N T IN S N T IN RS
O RS O
31/01/00 To sales a/c 6000 31/01/00 By balance c/d 6000

01/02/00 To balance b/d 6000 6000

CONCLUSION:
Thus we have to post the following transactions from journal to
Ledger.