1. Ledger

2. Account
A device which contains a systematic record of increase or decrease in an item during a particular period.
It has three parts:
A title name of the accounts
Left hand side which is usually called Debit side
Right hand side which is usually called Credit side.

3. Dr Cash Cr

4. Ledger: The ledger is called the king of all books of account because of original entry must be posted to the various accounts in the ledger. Ledger provide us the classified record of all transaction.
Ledger is also called the grouping of accounts.

5. Ledger is a book in which every account is allotted a separate page , and all the transactions relating to that account are written on that page in a summary form.

6. The following is the feature of Ledger:
(1). It has two identical sides—left--hand side and right--hand sides. The left hand side is called debit side and the right –hand side is called the credit side.

7. Specimen of ledger
Date
Particular
J.F
Amount

8. Transactions:
Started business with cash 50000$
Purchased a car for 10000$
Paid salaries for the month 2000$
Purchased merchandise for cash 7000$
Sold merchandise for cash 5000$
Purchased furniture for cash 2500$
Required: Pass Journal entries and then post it to ledger

9. Jan1:Shabnam started business with cash Jan3:Purchased a car for cash Jan4:Purchased merchandise on account from Noori for Jan7:Paid office rent 5000 Jan15:Sold merchandise for cash Jan20:Paid cash to Noori. Required: Pass Journal entries and post it to ledger.

10. March15:Umer started a business with cash 90000$ March 17:purchased merchandise on credit from Ahmad for 50000$ March 20:Salaries paid to workers 8000$ March 23:Returned merchandise to Ahmad worth 10000$. March 25:Paid telephone bill 3000 March 30: Sold merchandise for cash Pass journal entries and post them into ledgers

11. Trial balance
Trial balance is two column statement debit column and credit column. Trial balance is used for the proof of the arithmetical accuracy of the journal and ledger. In trial balance we record all the debit balance of the ledger on the debit side and all credit balance on credit side. If the debit and credit side of trial balance agree its mean our journal and ledger is correct.
continued….

12. In accounting we say (in balance)
And if the debit and credit side of trial balance is not correct it means (out of balance). Then we have to check once again carefully the journal and ledger of the firm.

13. Company’s Name Trial Balance December 31, 2006 Description
Debit Balance $
Credit Balance
TOTAL