PRINCIPLE BOOKS OF ACCOUNT.

RELATING TO SIMILAR TRANSACTIONS ACCUMULATED EFFECT OF EACH CHART OF ACCOUNTS. EXAMPLE : BUSINESSMEN WANTS TO KNOW TOTAL PURCHASES OR TOTAL CASH
CANNOT ASCERTAIN FROM IMMEDIATELY) DR ANJANA RAJU JOURNAL

LEDGER

GENERALLY THREE KINDS OF LEDGER ARE MAINTAINED.

1. DEBTORS LEDGER

SUB DIVISION OF LEDGER

2. CREDITORS LEDGER
3. GENERAL LEDGER
(WHEN THE SIZE OF THE ORGANISATION IS VERY LARGE)

DR ANJANA RAJU

1. DEBTORS LEDGER (CONTAINS ACCOUNTS OF ALL CUSTOMER) WHOM GOODS HAVE BEEN SOLD ON CREDIT. ENTRIES ARE MOSTLY FROM .SALES DAY BOOKS .SALES RETURN BOOK AND . CASH BOOK
(KNOWN AS CUSTOMER DR ANJANA RAJU SALES LEDGER) LEDGER OR

SUB DIVISION OF LEDGER

SUB DIVISION OF LEDGER

2.CREDITORS LEDGER (CONTAINS ACCOUNT OF ALL SUPPLIERS) ENTRIES ARE MOSTLY FROM PURCHASE DAY BOOKS PURCHASE RETURNS BOOKS AND CASH BOOK. (KNOWN AS SUPPLIERS PURCHASE LEDGER) DR ANJANA RAJU LEDGER OR

SUB DIVISION OF LEDGER

3. GENERAL LEDGER (CONTAINS RESIDUAL ACCOUNTS). MAINLY REAL ACCOUNTS AND NOMINAL ACCOUNTS (KNOWN AS ALSO NOMINAL LEDGER) ALL

DR ANJANA RAJU

DIFFERENT FORMS OF LEDGER ACCOUNTS.

A. STANDARD ACCOUNTS

FORM

OF

LEDGER

B. RUNNING BALANCE FORM OF LEDGER ACCOUNTS.

DR ANJANA RAJU

DIFFERENT FORMS OF LEDGER ACCOUNTS. A. STANDARD FORM OF LEDGER ACCOUNTS KNOWN AS T FORM ACCOUNTS WIDELY USED SIMPLIFIED REPRESENTATION DIVIDED INTO TWO SIDES

DR ANJANA RAJU

DIFFERENT FORMS OF LEDGER ACCOUNTS. A. STANDARD FORM OF LEDGER ACCOUNTS LEFT HAND SIDE REPRESENTS THE DEBIT SIDE RIGHT HAND CREDIT SIDE EACH SIDE HAS 1. DATE 2. PARTICULARS 3. FOILO AND 4. AMOUNT DR ANJANA RAJU SIDE REPRESENTS THE

SPECIMEN T FORM OF LEDGER ACCOUNT. DR TITLE OF ACCOUNT

DATE PARTICULARS J F AMT

CR

DATE PARTICULARS J AMT F

DR ANJANA RAJU

DIFFERENT FORMS OF LEDGER ACCOUNTS. B. RUNNING ACCOUNT. BALANCE FORM OF LEDGER

GENERALLY BANKS.

ADOPTED

BY

COMMERICAL

SOME OTHER BUSINESS HOUSES.

DIVIDED INTO SIX COLUMNS 1. DATE 2. PARTICULARS 3. FOLIO 4. DR AMOUNT 5. CREDIT AMOUNT 6. BALANCE DR ANJANA RAJU

SPECIMEN OF RUNNING FORM OF LEDGER ACCOUNT.

BANK ACCOUNT
DATE PARTICULARS J F DEBIT AMOUNT (RS) CREDIT AMOUN T (RS) BALANCE AMOUNT (RS)

1991 JUNE 1

TO BALANCE B/D TO SALES 10,000 4,000

5,000 (DR) 15,000 (DR) 11,000 (DR)

BY SALARY

DR ANJANA RAJU

POSTING OF LEDGER ACCOUNTS.

POSTING MEANS
TRANSFERRING OF DEBITS AND CREDITS FROM JOURNAL TO LEDGER.

DR ANJANA RAJU

POSTING OF LEDGER ACCOUNTS. MECHANICS OF POSTING) POSTING( PROCEDURE FOR

1. LOCATE IN THE LEDGER THE 1ST ACCOUNT NAME IN THE JOURNAL. 2. ENTER ON THE DEBIT SIDE OF THE LEDGER IN THE PARTICULARS COLUMN THE NAME OF THE ACCOUNT CREDITED WITH A PREFIX TO

DR ANJANA RAJU

MECHANICS OF POSTING OF LEDGER ACCOUNTS.

3. ENTER THE DATE OF THE TRANSACTION IN THE DATE COLUMN. 4. ENTER IN THE DEBIT COLUMN OF THE LEDGER ACCOUNT. THE AMOUNT OF DEBIT AS SHOWN IN THE JOURNAL.
5.ENTER IN THE FOLIO COLUMN OF THE JOURNAL THE NUMBER OF THE LEDGER PAGE IN WHICH POSTING HAS BEEN DONE.

DR ANJANA RAJU

MECHANICS OF POSTING OF LEDGER ACCOUNTS.

6.ENTER IN THE FOLIO COLUMN OF THE JOURNAL THE NUMBER OF THE LEDGER PAGE IN WHICH POSTIING HAS BEEN DONE.
7. LOCATE IN THE LEDGER THE 2ND ACCOUNT NAMED IN JOURNAL. 8. ENTER IN THE CREDIT SIDE OF THE LEDGER IN PARTICULARS COLUMN THE NAME OF THE ACCOUNT DEBITED WITH PREFIX BY
DR ANJANA RAJU

MECHANICS OF POSTING OF LEDGER ACCOUNTS.

9. ENTER THE DATE OF THE TRANSACTION IN THE DATE COLUMN. 10. ENTER THE CREDIT COLUMN OF THER LEDGER ACCOUNT THE AMOUNT OF CREDIT AS SHOWN IN JOURNAL.

DR ANJANA RAJU

MECHANICS OF POSTING OF LEDGER ACCOUNTS.

11.ENTER IN THE FOLIO COLUMN OF THE LEDGER THE NUMBER OF THE JOURNAL PAGE FROM WHICH THE ENTRY IS BEING POSTED.

12. ENTER IN THE FOLIO COLUMN OF THE JOURNAL THE NUMBER OF THE LEDGER PAGE IN WHICH POSTING HAS BEEN DONE.

DR ANJANA RAJU

ILLUSTRATION OF POSTING PROCESS FROM JOURNAL TO LEDGER

DATE
1990 DEC 1

PARTICULARS

L.F

AMOUNT (DR)

AMOUNT (CR)

CASH A/C DR TO CAPITAL A/C

(BEING BUSINESS STARTED CASH)

10,000

10,000

DR ANJANA RAJU

SPECIMEN T FORM OF LEDGER ACCOUNT. DR TITLE OF ACCOUNT

DATE PARTICULARS J F AMT

CR

DATE PARTICULARS J AMT F

DR ANJANA RAJU

LEDGER ACCOUNT.
DR
DATE

CASH ACCOUNT
PARTICULARS J AMT F 10,000 DA TE PARTICULARS J F

CR
AMT

1991 TO CAPTIAL JULY 9 A/C

DR ANJANA RAJU

LEDGER ACCOUNT.
DR CAPITAL ACCOUNT
DATE PARTICULARS J F AMT

CR

DATE PARTICULARS J AMT F

1991 BY CASH JULY9 A/C

10,000

DR ANJANA RAJU

BALANCING LEDGER ACCOUNTS. PERIODICALLY LEDGER ARE BALANCED

DIFFERENCE BETWEEN TWO SIDES IS THE BALANCE DEBIT SIDE TOTALS EXCEEDS CREDIT SIDE TOTAL IS DEBIT BALANCE CREDIT SIDE TOTAL EXCEEDS DEBIT SIDE IS CREDIT BALANCE
DR ANJANA RAJU

STEPS FOLLOWED FOR BALANCING ACCOUNTS

ON A ROUGH SHEET OF PAPER TAKE TOTAL OF THE TWO SIDES OF ACCOUNT. COMPUTE THE DIFFERENCE OT THE TOTAL OF THE TWO SIDES IF DEBIT SIDE TOTAL IS MORE .PUT THE DIFFERENCE ON THE CREDIT SIDE . BY WRITING THE WORDS BY BALANCE C/D
DR ANJANA RAJU

STEPS FOLLOWED FOR BALANCING ACCOUNTS

IF THE CREDIT SIDE TOTAL IS MORE .. PUT THE DIFFERNCE ON THE DEBIT SIDE . BY WRITING THE WORDS TO BALANCE C/D AFTER APPROPRIATION THE DIFFERENCE ADD BOTH THE SIDES .
DR ANJANA RAJU

STEPS FOLLOWED FOR BALANCING ACCOUNTS

BRING DOWN THE BALANCES .. ON DEBIT SIDE TO BALANCE B/D . ON CREDIT SIDE BY BALANCE B/D

DR ANJANA RAJU

LEDGER ACCOUNT
DR
DATE 1.6.91

BANK ACCOUNT
PARTICULA J AMT RS F TO CAPITAL A/C TO SALES A/C 30,000 DATE 5.6.91 PARTICULARS BY PURCHASES A/C BY WAGES A/C BY FREIGHT A/C BY BALANCE C/D 45,000

CR
J F AMT

10,000 5,000 2,000

10.1.91

15,000

28,000 45,000

1.7.91

TO BALANCE B/D

28,000 DR ANJANA RAJU

PASS NECESSSARY JOURNAL ENTERIES AND POST TO LEDGER ACCOUNTS

DR ANJANA RAJU

PASS NECESSSARY JOURNAL AND POST TO LEDGER ACCOUNTS OF ALEN LTD.

PARTICULARS

1991 JAN JAN 1 STARTED BUSINESS WITH RS 2,00,000 IN THE BANK AND RS 40,000 IN CASH. BROUGHT SHOP FITTINGS RS 40,000 AND A VAN RS 60,000 BOTH PAID BY CHEQUE.

2 3

PAID RENT BY CHEQUE RS 5,000

BROUGHT GOODS FOR RESALE ON CREDIT FROM SUNNEL & CO RS 50,000 CASH SALES RS 5,000

DR ANJANA RAJU

PASS NECESSSARY JOURNAL AND POST TO LEDGER ACCOUNTS OF ALEN LTD.

PARTICULARS

1991 JAN 8 10 12 15 PAID WAGES OF ASSISTANT IN CASH RS 1,000 PAID INSURANCE BY CHEQUE RS 500 CASH SALES RS 8,000 PAID WAGES OF ASSISTANT IN CASH RS 1,000 GOODS RETURNED TO SUNNEL &CO RS 6,000 PAID SUNNEL & CO RS 30,000 BY CHEQUE

17

19

BROUGHT GOODS FOR RESALE CHETAN & CO RS 25,000 DR ANJANA RAJU

ON

CREDIT

FROM

PASS NECESSSARY JOURNAL AND POST TO LEDGER ACCOUNTS OF ALEN LTD.

PARTICULARS

1991 JAN 19 CASH SALES RS 7,000

22 PAID WAGES OF ASSISTANT IN CASH RS 1,000

24 BROUGHT STATIONARY , PAID IN CASH RS 500

25 CASH SALES RS 15000

DR ANJANA RAJU

PASS NECESSSARY JOURNAL AND POST TO LEDGER ACCOUNTS OF ALEN LTD.

PARTICULARS

1991 JAN 27 PAID CHETAN & CO RS 14,000 BY CHEQUE

29 PAID WAGES OF ASSISTANT IN CASH RS 1,000

31 PAID RS 20,000 INTO BANK.

DR ANJANA RAJU

IN THE BOOKS OF ALEN LTD

DATE PARTICULARS L. F AMOUNT (DR) AMOUNT (CR)

1991 JAN 1

BANK A/C DR CASH A/C DR TO CAPITAL A/C (BEING CAPITAL INVESTED)

FURNITURE & FITTINGS A/C DR VAN A/C DR TO BANK A/C (BEING THE PURCHASE OF FURNITURE& FITTING AND VAN FOR BUSINESS)
DR ANJANA RAJU

2,00,000 40,000
2,40,000 40,000 60,000 1,00,000

IN THE BOOKS OF ALEN LTD

DATE PARTICULARS L. F AMOUNT (DR) AMOUNT (CR)

1991 JAN 2

RENT A/C DR TO BANK A/C (BEING RENT PAID BY CHEQUE) PURCHASES A/C DR TO SUNNEL A/C (BEING GOODS PURCAHSED ON CREDIT)

5,000
5,000

50,000
50,000

DR ANJANA RAJU

IN THE BOOKS OF ALEN LTD

DATE PARTICULARS L. F AMOUNT (DR) AMOUNT (CR)

1991 JAN 5

CASH A/C TO SALES A/C (BEING GOODS SOLD FOR CASH)

WAGES A/C DR TO CASH A/C (BEING WAGES PAID TO ASSISTANT)

DR

5,000
5,000

1,000
1,000

DR ANJANA RAJU

IN THE BOOKS OF ALEN LTD

DATE PARTICULARS L. F AMOUNT (DR) AMOUNT (CR)

1991 JAN 10

INSURANCE A/C DR TO BANK A/C (BEING INSURANCE PAID BY CHEQUE)

CASH A/C DR TO SALES A/C (BEING GOODS SOLD FOR CASH)

500
500

8,000
8,000

12

DR ANJANA RAJU

IN THE BOOKS OF ALEN LTD

DATE PARTICULARS L.F AMOUNT (DR) AMOUNT (CR)

1991 JAN 15 WAGES A/C TO CASH A/C (BEING WAGES PAID) DR 500 500

SUNNEL & CO A/C DR TO RETURN OUTWARDS A/C 15 (BEING GOODS RETURNED TO SUNNEL)

8,000 8,000

DR ANJANA RAJU

IN THE BOOKS OF ALEN LTD

DATE PARTICULARS L.F AMOUNT (DR) AMOUNT (CR)

1991 JAN 17 SUNNEL & CO A/C TO BANK A/C (BEING WAGES PAID) DR 30,000 30,000

PURCHASES A/C DR TO CHETAN & CO A/C 19 (BEING GOODS PURCHASED ON CREDIT)

25,000 25,000

DR ANJANA RAJU

IN THE BOOKS OF ALEN LTD

DATE PARTICULARS L.F AMOUNT (DR) AMOUNT (CR)

1991 JAN 19 CASH A/C DR TO SALES A/C (BEING GOODS SOLD FOR CASH PAID) WAGES A/C TO CASH A/C (BEING WAGES PAID TO ASSISTANT) DR 7,000 7,000

1,000 1,000

22

DR ANJANA RAJU

IN THE BOOKS OF ALEN LTD

DATE PARTICULARS L.F AMOUNT (DR) AMOUNT (CR)

1991 JAN 24 STATIONARY A/C TO CASH A/C (BEING PURCAHSE OF STATIONARY) DR 500 500

25

CASH A/C DR TO SALES A/C (BEING GOODS SOLD FOR CASH)

1,000 1,000

DR ANJANA RAJU

IN THE BOOKS OF ALEN LTD DATE PARTICULARS L . F AMOUNT (DR) AMOUNT (CR)

1991 CHETAN & CO A/C JAN 27 TO BANK A/C (BEING PAID BY CHEQUE) DR 14,000 14,000

WAGES A/C DR TO CASH A/C 29 (BEING GOODS SOLD FOR CASH) 31

1,000 1,000

BANK A/C DR TO CASH A/C (BEING CASH PAID INTO BANK) GRAND TOTAL DR ANJANA RAJU

20,000

20,000
5,30,000 5,30,000

DR
DATE

BANK ACCOUNT
PARTICULA J AMT RS F DATE PARTICULARS

CR
J F AMT

1.1.91

31.1.91

TO CAPITAL A/C TO CASH A/C

2,00,000 1.1.9 1 20,000

BY FURNITURE& FITTINGS A/C BY VAN A/C BY RENT A/C BY INSURANCE A/C BY SUNNEL A/C BY CHETAN &CO A/C BY BALANCE C/D

40,000 60,000 5,000 500 30,000 14,000 70,500 2,20,000

1.7.91 TO BALANCE

2,20,000
DR ANJANA RAJU

70,500

DR
DATE

CASH ACCOUNT
PARTICULA J AMT RS F DATE PARTICULARS J F

CR
AMT

1.1.91

5.1.91 12.1.91 19.1.91 25.1.91

TO CAPITAL A/C TO SALES TO SALES TO SALES TO SALES

40,000

1.1.9 1

5,000 8,000 7,000 15,000

BY BY BY BY BY BY

WAGES WAGES CASH A/C STATIOANRY WAGES A/C BANK A/C

1,000 1,000 1,000 500 1,000 20,000

BY BALANCE C/D 75,000

DR ANJANA RAJU

50,500 75,000

1.7.91

TO BALANCE B/D

50,500

PREPARE LEDGER ACCOUNTS. CAPITAL ACCOUNT VAN ACCOUNT WAGES ACCOUNT RENT ACCOUNT PURCHASES ACCOUNT SUNNEL&C0 ACCOUNT INSURANCE ACCOUNT RETURN OUTWARD ACCOUNT CHETAN & CO ACCOUNT STATIONARY ACCOUNT
DR ANJANA RAJU

PREPARE LEDGER ACCOUNTS.

PERPARE LEDGER ACCOUNTS

( ABOVE SLIDE)
DR ANJANA RAJU

THE

ACCOUNTS