1. LEDGER
The main function of a ledger is to classify or sort out all items appearing in the journal under their appropriate accounts. At the end of the accounting period each account will contain the entire information of all the transactions in a summarized or condensed form. Con…

2. All the transactions are recorded first in the journal and then from the journal they are posted in the respective accounts in the ledger. Ledger is a book where all the transactions would ultimately find their place under the respective heads of accounts. Con…

3. Con… Question.1. What is a Ledger?
Answer. Ledger is a book where all the transactions find their place under the respective heads of accounts.
Question.2. What is the main function of a Ledger?
Answer. The main function of a ledger is to classify or sort out all items appearing in the journal under their appropriate accounts.
Con…

4. HOW TO OPEN AN ACCOUNT IN THE LEDGER
The page is divided into two parts by vertical line in between. The left hand side is used as a debit side of an account having four columns and the right hand side is used as a credit side also having four columns. Total columns in a ledger account are eight.
Con…

5. ------------Name (Account) Dr. Cr.
Date
Particulars
J.F.
Amount

6. Con… Question.3. How many columns are in a Ledger?
Answer. There are eight columns in a Ledger.
Question.4. Name the left hand side of the Ledger.
Answer. Left hand side of the ledger is called debit side.
Question.5. Name the right hand side of the Ledger.
Answer. Right hand side of the ledger is called credit side.
Con…

7. POSTING
Every transaction is first recorded in the journal and then it is posted into the ledger. Posting is made to the debit side account which is debited in the journal entry and to the credit side of an account which is credited in the journal entry.
Con…

8. Name of the credit account is written on the debit account and the name of debit account is written on the credit side of account. Entry on the debit side of an account starts with “To” whereas on the credit side starts with “By”. Con…

9. CLOSING OF ACCOUNTS
The object of recording the business transactions in various ledger accounts to enable a trader to ascertain balance of an account easily at any time. For the preparation of Trial balance all accounts are to be closed.
Con…

10. TRIAL BALANCE
A trial balance is a summary of all the ledger balances outstanding as on particular date. List of debit balances and credit balances should be equal. It said that Trial balance is tallied. When trial balance tallies it establishes the arithmetical accuracy of record.
Con…

11. Performa of Trial Balance is as follows: Trial Balance as on …………
Serial No.
Name of Account
Amount 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Capital
Drawings
Sales
Sales return (Return Inwards)
Purchases
Purchases return (Return Outwards)
Expenses
Incomes
Carriage Inwards
Carriage Outwards
Bad Debts
Trade Expenses
Insurance
Rent, Rates & Taxes
Traveling Expenses -

12. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
Discount Received
Discount Allowed
Loan taken
Stock (Opening)
Interest Paid
Loan Given
Interest received
Suppliers (Creditors)
Investment
Goodwill
Cash
Patents
Machinery
Furniture & Fixture
Plant
Land
Building
Debtors
Bills Receivables
Bills Payables -

13. 36 37 38 39 40 41 42
Bank Overdraft
Printing & Stationery
Wages
Salaries
Advertisement
Motor Car Exp.
Cash at Bank -
TOTAL

14. Question.6. What is a Trial Balance?
Answer. A trial balance is a summary of all the ledger balances outstanding as on particular date.
Question.7. Fill in the blank
Answer. Debit side and credit side of a Trial Balance must be …………..
(Equal) OR (Unequal)
Con…

15. Example.1. Prepare a Trial Balance from the following items:
Particulars
Totals
Capital
Furniture & Fixture
Land & Building
Plant & Machinery
Drawings
Patents
Stock
Purchases
Wages
Salaries
Sundry Debtors
Sales
Sales Returns
Purchases Returns
Loan from Adil
Rent, Rates & Taxes
Bad Debts
Sundry Creditors
Discount received
Trade Expenses
Interest on Loan
Insurance
Traveling Expenses
Cash in Hand
Cash at Bank
7,63,050
40,000
4,03,000
2,00,000
60,000
20,000
4,00,000
9,50, ,000
72,000
3,50,000
13,20,000
61,000
10,000
48,000
4,000
2,24,000
9,000
700
4,500
6,500
3,000
2,100
51,250

16. Solution. 1. Trial Balance as on__________
Serial No.
Name of Account
Amount 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Capital
Furniture & Fixture
Land & Building
Plant & Machinery
Drawings
Patents
Stock
Purchases
Wages
Salaries
Sundry Debtors
Sales
Sales Returns
Purchases Returns
Loan from Adil
Rent, Rates & Taxes
Bad Debts
Sundry Creditors
Discount received
Trade Expenses
Interest on Loan
Insurance
Traveling Expenses
Cash in Hand
Cash at Bank
40,000
4,03,000
2,00,000
60,000
20,000
4,00,000
9,50, ,000
72,000
3,50,000
61,000
48,000
4,000
700
4,500
6,500
3,000
2,100
51,250
7,63,050
13,20,000
10,000
2,24,000
9,000
TOTAL
27,26,050