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Ledger Basics

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3 views5 pages

Ledger Basics

Uploaded by

bunymarco
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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XYZ Company

Journal

As on 4th January 2020

1. Cash A/c 80,000


Capital A/c 80,000
2. Building A/c 30,000
Cash A/c 30,000
3. Furniture A/c 10,000
Cash A/c 10,000
4. Equipment’s A/c 5000
Account payable 5000

XYZ Company

Ledger

As on 4th January 2020

Cash A/c

Dr. Cr.

Date Particulars F Amount Date Particulars F Amount


1 Capital A/c 80,000 2 Building A/c 30,000
3 Furniture A/c 10,000
4 Balance b/d 40,000
Total 80,000 80,000

Debit balance

Capital A/c

Dr. Cr.

Date Particulars LF Amount Date Particulars LF Amount


1 Cash A/c 80,000
4 Balance b/d 80,000
Total 80,000 80,000
Building A/c

Dr. Cr.

Date Particulars LF Amount Date Particulars LF Amount


2 Cash A/c 30,000
4 Balance b/d 30,000
Total 30,000 30,000

Debit balance

Furniture A/c

Dr. Cr.

Date Particulars LF Amount Date Particulars LF Amount


3 Cash A/c 10,000
4 Balance b/d 10,000
Total 10,000 10,000

Debit balance

Equipment A/c

Dr. Cr.

Date Particulars LF Amount Date Particulars LF Amount


4 Account 5000
payable
4 Balance b/d 5000
Total 5000 5000

Debit balance
Account Payable A/c

Dr. Cr.

Date Particulars LF Amount Date Particulars LF Amount


4 Equipment A/c 5000
4 Balance b/d 5000
Total 5000 5000

Credit Balance

XYZ Company

Trial Balance

As on 4th January 2020

No. Particulars Debit Credit


Types of Ledger

There are 3 types of Ledgers – King of all books/ Book of Principles

• Sales Ledger

• Purchase Ledger

• General Ledger

1. Sales Ledger – Sales Ledger is a ledger in which the company maintains the transaction of
selling the products, services or cost of goods sold to customers. This ledger gives the idea of sales
revenue and income statement.

2. Purchase Ledger – Purchase Ledger is a ledger in which the company organizes the transaction
of purchasing the services, products, or goods from other businesses. It gives the visibility of how
much amount the company paid to other businesses.

3. General Ledger – General Ledger is divided into two types – Nominal Ledger and Private
Ledger. Nominal ledger gives information on expenses, income, depreciation, insurance, etc. And
Private ledger gives private information like salaries, wages, capitals, etc. Private ledger is not
accessible to everyone.
Record the following transactions in the Journal and post them into
ledger and prepare a Trail Balance
Oct 1st : Neel started business with a capital of 80,000
3rd : Bought goods from Karl on credit 20,000
4th : Sold goods to Tarl 25,000 on account
5th : Cash purchases of goods 25,000
7th : Cash sales 15,000
9th : Goods retuned to Karl 2,000
10th : Bought furniture for 15,000

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