explain the procedure for preparing ledger accounts? give three examples of each .
The procedure for preparing Ledger is as follows.
Account which is debited in the Journal Entry-
1. Identify the account in the Ledger that is to be debited.
2. Enter date in the debit side of the ‘Account’ in the ‘Date’ column.
3. Enter the name of the account which is credited in the respective journal entry in the ‘Particulars’ column in the debit side of the account.
4. Enter the page number in ‘J.F’ (Journal Folio) column of the Journal, where the entry is recorded.
5. Post the corresponding amount in the ‘Amount’ column on the debit side.
Account which is credited in the Journal Entry-
1. Identify the account in the Ledger that is to be credited.
2. Enter date in the credit side of the ‘Account’ in the ‘Date’ column.
3. Enter the name of the account which is debited in the respective journal entry in the ‘Particulars’ column in the credit side of the account.
4. Enter the page number in ‘J.F’ (Journal Folio) column of Journal where the entry is recorded.
5. Post the corresponding amount in the ‘Amount’ column on the credit side.
Example:
Journal |
| |||||
Date | Particulars | L.F. | Debit Amount Rs | Credit Amount Rs | ||
Jan. 4, 2012 | Cash A/c | Dr. |
| 7,500 |
| |
| To Capital A/c |
|
| 7,500 | ||
| (Started business with cash) |
|
|
| ||
|
|
|
|
| ||
Jan. 15, 2012 | Cash A/c | Dr. |
| 15,000 |
| |
| To Sales A/c |
|
| 15,000 | ||
| (Sold goods for cash) |
|
|
| ||
|
|
|
|
| ||
Jan. 28, 2012 | Plant and Machinery A/c | Dr. |
| 10,000 |
| |
| To Cash A/c |
|
| 10,000 | ||
| (Purchase Plant and Machinery for cash) |
|
|
| ||
Ledger
Cash Account | |||||
Dr. | Cr. | ||||
Date | Particulars | Amount Rs | Date | Particulars | Amount Rs |
Jan 4, 2012 | Capital A/c | 7,500 | Jan 28, 2012 | Plant and Machinery A/c | 10,000 |
Jan 15, 2012 | Sales A/c | 15,000 | Jan 31, 2012 | Balance c/d | 12,500 |
|
| 22,500 |
|
| 22,500 |
|
| ||||
Capital Account |
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Dr. | Cr. |
| ||||
Date | Particulars | Amount Rs | Date | Particulars | Amount Rs | |
Jan 31, 2012 | Balance c/d | 7,500 | Jan 4, 2012 | Cash A/c | 7,500 | |
|
| 7,500 |
|
| 7,500 | |
|
| |||||
Sales Account |
| |||||
Dr. | Cr. |
| ||||
Date | Particulars | Amount Rs | Date | Particulars | Amount Rs | |
Jan 31, 2012 | Balance c/d | 15,000 | Jan 15, 2012 | Cash A/c | 15,000 | |
|
| 15,000 |
|
| 15,000 | |
|
| |||||
Plant and Machinery Account |
| |||||
Dr. | Cr. |
| ||||
Date | Particulars | Amount Rs | Date | Particulars | Amount Rs | |
Jan 28, 2012 | Cash A/c | 10,000 | Jan 31, 2012 | Balance c/d | 10,000 | |
|
| 10,000 |
|
| 10,000 | |
|
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