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    Assignment Module 3 Ledger

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    PRINCE
    The document provides instructions for an accounting assignment to prepare ledger accounts from sample transactions for Mr. Joshi's business. It includes: 1) Transactions from July 2011 including starting the business, purchases, sales, payments, and receipts. 2) Sample ledger accounts for Capital, Sales, Purchases, and others that are balanced with debit and credit totals equaling each other. 3) Definitions of ledger and steps for recording transactions in ledger accounts from journals or other books of original entry. Balancing of accounts requires subtracting total debits from total credits.

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    Assignment Module 3 Ledger

    Uploaded by

    PRINCE
    226 views3 pages
    The document provides instructions for an accounting assignment to prepare ledger accounts from sample transactions for Mr. Joshi's business. It includes: 1) Transactions from July 2011 including starting the business, purchases, sales, payments, and receipts. 2) Sample ledger accounts for Capital, Sales, Purchases, and others that are balanced with debit and credit totals equaling each other. 3) Definitions of ledger and steps for recording transactions in ledger accounts from journals or other books of original entry. Balancing of accounts requires subtracting total debits from total credits.

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    The document provides instructions for an accounting assignment to prepare ledger accounts from sample transactions for Mr. Joshi's business. It includes: 1) Transactions from July 2011 including starting the business, purchases, sales, payments, and receipts. 2) Sample ledger accounts for Capital, Sales, Purchases, and others that are balanced with debit and credit totals equaling each other. 3) Definitions of ledger and steps for recording transactions in ledger accounts from journals or other books of original entry. Balancing of accounts requires subtracting total debits from total credits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    226 views3 pages

    Assignment Module 3 Ledger

    Uploaded by

    PRINCE
    The document provides instructions for an accounting assignment to prepare ledger accounts from sample transactions for Mr. Joshi's business. It includes: 1) Transactions from July 2011 including starting the business, purchases, sales, payments, and receipts. 2) Sample ledger accounts for Capital, Sales, Purchases, and others that are balanced with debit and credit totals equaling each other. 3) Definitions of ledger and steps for recording transactions in ledger accounts from journals or other books of original entry. Balancing of accounts requires subtracting total debits from total credits.

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    © All Rights Reserved
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    of 3

    ASSIGNMENT

    Course Name: Basics Accounts - 1


    Module 3: Ledger
    1.From the following transactions Prepare necessary ledger accounts in the books of
    Mr. Joshi and balance the same.
    2011 1 Started Business with Cash Rs 8,000.
    July
      4 Purchased goods on credit from Mr. Desmukh Rs 3,000 at 10% T.D.
      6 Cash Sales Rs 4,000 at 5% C.D.
      10 Paid Rent Rs 900.
      15 Cash Purchases Rs 800.
      20 Credit sales to Mr. Kulkarni Rs 2,700.
      22 Paid cash to Mr. Deshmukh Rs 2,700.
      23 Received cash from Mr. Kulkarni Rs 1,000.
    31 Paid wages Rs 500

    Dr. Cr.
    Amt Amt
    Date Particulars JF Date Particular JF
    (Rs.) (rs.)
    July 2011 Capital A/c 8,000 July 2011
    1 Sales A/c 3,800 10 Rent A/c 900
    6 Kulkarni A/c 1,000 15 Purchase A/c 800
    23 22 Deshmukh A/c 2,700
    31 Wages A/c 500
    31 Balance c/d 7,900
    12,800 12,800

    Capital Account
    Dr Cr.
    Date Particulars JF Amt (Rs.) Date Particular JF Amt
    (rs.)
    July 2011 Balance c/d 8,000 July 2011 Cash A/c 8,000
    31 1
    8,000 8,000
    Purchase Account
    Dr Cr.
    Date Particulars JF Amt (Rs.) Date Particular JF Amt
    (rs.)
    July 2011 July 2011 Balance c/d 3,500
    4 Deshmukh A/c 2,700 31
    15 Cash A/c 800
    3,500 3, 500

    2. What is Ledger? Explain Steps of Recording Ledger?

    Ledger is a bound book in which all account are maintained it is recorded


    journal and subsidiary books. There is no direct recording in ledger. Ledger
    is a secondary book of accounts. Its provides summarized record of various
    account at one place. Decision making in business is based on information
    available from ledger. It is a main part of books of account.

    3. Balancing of Ledger Account

    Balancing a general Ledger involves Subtracting the total debits from the
    total credits. All debit accounts are meant to be entered one the left side
    of ledger while the credit are on the right side. For a general ledger to be
    balanced, credits and debits must be equal
    4. What are the Rules Regarding Posting?

    A general rule of posting is that both credited and debited entries must
    be equal when an accountant posts them in the general ledger. The
    accountant simply has to enter the same amount from the first entry to
    the second entry. You can create two different columns to denote credit
    versus debit.

    5. What is the Format of Ledger?

    This is the standard form of ledger account, which is in “T” form. It is widely used.
    Each account in the ledger is divided into two equal parts. The left hand side is the
    debit side [Dr.] and the right hand side is the credit side [Cr.].
    Each of the two sides is further divided into four columns for recording the date of
    the transactions, the name of the account to be debited or credited, folio, and the
    amount of the transaction. J.F. stands for journal folio i.e., the page number in the
    journal or subsidiary book from where the posting to the account is made.
    This form has six columns, viz., (1) Date; (2) Particulars ; (3) J.F.; (4) Dr. Amount
    [Rs .]; (5) Cr. Amount [Rs .]; and (6) Balance.

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