Ledger Accounts

All the accounts identified on the basis of transactions recorded in

different journals/books such as Cash Book, Purchase Book, Sales Book etc.
will be opened and maintained in a separate book called Ledger. So a ledger is a
book of account; in which all types of accounts relating to assets, liabilities,
capital, expenses and revenues are maintained. It is a complete set of accounts
of a business enterprise.
Ledger is bound book with pages consecutively numbered. It may also be a
bundle of sheets.
Thus, from the various journals/Books of a business enterprise, all
transactions recorded throughout the accounting year are placed in relevant
accounts in the ledger through the process of posting of transactions in the
ledger. Thus, posting is the process of transfer of entries from Journal/Special
Journal Books to ledger.
Features of ledger:
 Ledger is an account book that contains various accounts to which
various business transactions of a business enterprise are posted.
 It is a book of final entry because the transactions that are first entered in
the journal or special purpose Books are finally posted in the ledger. It is
also called the Principal Book of Accounts.
 In the ledger all types of accounts relating to assets, liabilities, capital,
revenue and expenses are maintained.
 It is a permanent record of business transactions classified into relevant
accounts. l It is the ‘reference book of accounting system and is used to
classify and summarize transactions to facilitate the preparation of
financial statements.
Format of a ledger sheet:
The format of a ledger sheet is as follows:
Types of Ledger
In large scale business organisations, the number of accounts may run into hundreds. It is
not always possible for a businessman to accommodate all these accounts in one ledger.
They, therefore, maintain more than one ledger.
Types of Ledger:
1. Assets Ledger:
It contains accounts relating to assets only e.g. Machinery account, Building account,
Furniture account, etc.
2. Liabilities Ledger:
It contains the accounts of various liabilities e.g. Capital (Owner or partner), Loan‘
account, Bank overdraft, etc.
3. Revenue Ledger:
It contains the revenue accounts e.g. Sales account, Commission earned account, Rent
received account, interest received account, etc.
4. Expenses Ledger:  
It contains the various accounts of expenses incurred, e.g. Wages account, Rent paid
account, Electricity charges account, etc.
5. Debtors Ledger:
It contains the accounts of the individual trade debtors of the business. Individuals, firms
and institutions to whom goods and services are sold on credit by business become the
‘trade debtors’ of the business
6. Creditors Ledger:
It contains the accounts of the individual trade Creditors of the business. Individuals,
firms and institutions from whom a business purchases goods and services on credit are
called ‘trade creditors’ of the business.
7. General Ledger:
 It contains all those accounts which are not covered under any of the above types of
ledger. For example Landlord A/c, Prepaid insurance A/c etc.

Ex:1 Match the column A with column B:

A B
1. Book Containing Accounts Ledger
2. Pages number of the Ledger Liabilities Ledger

3. Machinery Account, Building Account, Revenue Ledger

Furniture Account
4. Loan’s Account, Bank Overdraft Expenses Ledger
5. Rent Paid, Wages paid, Electricity Folio
Charges

6. Sales Account, Commission Account, Assets Ledger

Interest Received amount

Problem: 1
Journalize the following transaction and post them in the ledger:
2006
January 1 Commenced Business with Cash 50,000
January 3 Paid into Bank 25,000
January 5 Purchased furniture for cash 5,000
January 8 Purchased goods and paid by cheque 15,000
January 8 Paid for carriage 500
January 14 Purchased Goods from K. Murthy 35,000
January 18 Cash Sales 32,000
January 20 Sold Goods to Ashok on credit 28,000
January 25 Paid cash to K.Murthy in full settlement 34,200
January 28 Cash received from Ashok 20,000
January 31 Paid Rent for the month 2,000
January 31 Withdrew from bank for private 2,500

Problem: 2
 The following transactions are related to the books of business concern,
journalize the transaction and post them in the ledger accounts.
2017
April 2 Cash Sales 15,000
April 2 Paid Salaries 6,000
April 6 Sold goods to Pankaj 10,000
April 10 Cash Purchases 5,000
April 13 Paid Stationary 100
April 18 Goods taken by proprietor for personal 1,000
use
April 23 Bought goods from Manoj 13,000
April 25 Received from Pankaj on account 4,000
April 27 Sold goods for cash 4,000
April 30 Received interest on investments 1,400

Solution: Problem: 1
Journal Entries
Date Particulars LF Debit Credit
Amount Amount
1.1.2006 Cash a/c Dr. 50,000
To Capital a/c 50,000
(Being capital invested in business)
3.1.2006 Bank a/c Dr. 25,000
To cash a/c 25,000
(Being paid into bank)
5.1.2006 Furniture a/c Dr. 5,000
To cash a/c 5,000
(Being furniture purchased)
8.1.2006 Purchases a/c Dr. 15,000
To Bank a/c 15,000
(Being goods purchased)
8.1.2006 Carriage a/c Dr. 500
To cash a/c 500
(Being paid for carriage)
14.1.2006 Purchases a/c Dr. 35,000
To murthy’s a/c 35,000
 (Being goods purchased)
18.1.2006 Cash a/c Dr. 32,000
To Sales a/c 32,000
(Being Cash sales)
20.1.2006 Ashok a/c Dr. 28,000
To Sales a/c 28,000
(Being goods sold to ashok)
25.1.2006 Murthy’s a/c Dr. 35,000
To Cash a/c 34,200
To Discount Received a/c 800
(Being paid to murthy and discount
received)
28.1.2006 Cash a/c Dr. 20,000
To Ashok’s a/c 20,000
(Being received from ashok)
31.1.2006 Rent a/c Dr. 2,000
To Cash a/c 2,000
(Being rent paid)
31.1.2006 Drawings a/c Dr. 2,500
To Bank a/c 2,500
(Being withdrew for private use)
Ledger Accounts
Dr. Cr.
Cash A/c
Date Particulars JF Amount Date Particulars J Amount
F
1.1.06 To Capital a/c 50,000 3.1.06 By Bank a/c 25,000
18.1.06 To Sales 32,000 5.1.06 By Furniture a/c 5,000
28.1.06 To Ashok’s a/c 20,000 8.1.06 By Carriage a/c 500
25.1.06 By Murthy’s a/c 35,000
31.1.06 By Rent 2,000
31.1.06 By Balance c/d 34,500
1,02,00 1,02,000
0
1.2.06 To Balance b/d 34,500

Capital A/c
Date Particulars JF Amount Date Particulars J Amount
F
 31.1.06 To Balance c/d 50,000 1.1.06 By Cash a/c 50,000
50,000 50,000
1.2.06 By Balance b/d 50,000

Ledger Accounts
Dr. Cr.
Bank A/c
Date Particulars JF Amount Date Particulars J Amount
F
3.1.06 To Cash a/c 25,000 8.1. 06 By Purchases 15,000
31.1.06 By Drawings 2,500
31.1.06 By Balance c/d 7,500
25,000 25,000
1.2.06 To Balance b/d 7,500

Furniture A/c
Date Particulars JF Amount Date Particulars J Amount
F
5.1.06 To Cash a/c 5,000 31.1.06 By Balance c/d 5,000
5,000 5,000
1.2.06 To Balance b/d 5,000

Purchases A/c
Date Particulars JF Amount Date Particulars J Amount
F
8.1.06 To Bank A/c 15,000 31.1.06 By Balance c/d 50,000
14.1.06 To Murthy’s a/c 35,000
50,000 50,000
1.2.06 To Balance b/d 50,000

Carriage A/c
Date Particulars JF Amount Date Particulars J Amount
F
8.1.06 To Cash a/c 500 31.1.06 By Balance c/d 500
500 500
1.2.06 To Balance b/d 500

Murthy’s A/c
Date Particulars JF Amount Date Particulars J Amount
 F
25.1.06 To Cash a/c 34,200 14.1.06 By Purchases 35,000
25.1.06 To Discount 800
Received a/c
35,000 35,000

Sales A/c
Date Particulars JF Amount Date Particulars J Amount
F
31.1.06 To Balance c/d 60,000 18.1.06 By cash a/c 32,000
20.1.06 By Ashok a/c 28,000
60,000 60,000
1.2.06 By Balance b/d 60,000

Ashok A/c
Date Particulars JF Amount Date Particulars J Amount
F
20.1.06 To Sales a/c 28,000 28.1.06 By Cash a/c 20,000
31.1.06 By Balance c/d 8,000
28,000 28,000
1.2.06 To Balance b/d 8,000

Discount Received a/c

Date Particulars JF Amount Date Particulars J Amount
F
31.1.06 To Balance c/d 800 25.1.06 By Murthy’s a/c 800
800 800
1.2.06 By Balance b/d 800

Rent a/c
Date Particulars JF Amount Date Particulars J Amount
F
31.1.06 To Cash a/c 2,000 31.1.06 By Balance c/d 2,000
2,000 2,000
1.2.06 To Balance b/d 2,000

Drawings A/c
Date Particulars JF Amount Date Particulars J Amount
F
31.1.06 To Bank a/c 2,500 31.1.06 By Balance c/d 2,500
2,500 2,500

1.2.06 To Balance b/d 2,500

Problem :3

Journalize the following transactions in the books of the Amar. post them in the
Ledger:-

2004
March1 Bought goods for cash Rs. 25,000
2 Sold goods for cash Rs. 50,000
3 Bought goods for credit from Gopi Rs.19,000
5 Sold goods on credit to Robert Rs.8,000
7 Received from Robert Rs. 6,000
9 Paid to Gopi Rs.5,000
20 Bought furniture for cash Rs. 7,000

Journal of Amar

Date Particulars L Debit Credit

F
2004 Purchases A/C Dr. 25,000
May 1 To cash A/c 25,000
(Cash purchase)
2 Cash A/c 50,000
Dr. 50,000
To Sales A/c
(Cash sales)
3 Purchase A/c 19,000
Dr.
To Gopi A/c 19,000
(Cash purchase)
5 Robert A/c Dr. 8,000
To Sales A/c 8,000
(Credit purchase)
7 Cash A/c 6,000
Dr. 6,000
To Robert A/c
(Credit sales)
9 Gopi A/c 5,000
Dr. 5,000
To Cash A/c
(Cash paid)
20 Furniture A/c 7,000
Dr. 7,000
To cash A/c
(Furniture purchase)
 Ledger of Amar

Dr Cash Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount
. RS . RS
2004 2004
Mar To sales A/c 50,000 Mar By Purchase 25,000
5 1 A/c
To Robert A/c 6,000 By Gopi A/c 5,000
7 9
By Furniture 7,000
20 A/c
By Balance c/d 19,000
31
56,000 56,000

Apr To Balance b/d 19,000

1

Dr Purchase Account cr
Date Particulars J.F Amount Date Particulars J.F Amount
. RS . RS
2004 2004
Mar To cash A/c 25,000 31 By Balance c/d 44,000
1
To Gopi A/c 19,000
3
44,000
44,000

Apr To Balance b/d 44,000

1

Dr Sales Account cr
Date Particulars J.F Amount Date Particulars J.F. Amount
. RS RS
2004 2004
Mar31 To balance c/d 58,000 By cash A/c 50,000
2
By Robert A/c 8,000
5
58,000 58,000

Apr By Balance 58,000

1 b/d
Dr Furniture Account cr
Date Particulars J.F Amount Date Particulars J.F Amount
. RS . RS
2004 2004
Mar To cash A/c 7,000 Mar By Balance c/d 7,000
20 31
7,000 7,000

Apr To Balance b/d 7,000

1

Dr Gopi Account cr
Date Particulars J.F Amount Date Particulars J.F Amount
. RS . RS
2004 2004
Mar To cash A/c 5,000 Mar By Purchase 19,000
19 3 A/c
31 To balance c/d 14,000
19,000 19,000
Apr By Balance b/d 19,000
1

Dr Robert Account Cr
Date Particulars J.F. Amount Date Particulars J.F. Amount
RS RS
2004 2004
Mar 5 To sales 8,000 Mar By Cash 6,000
A/c 7 A/c
By balance 2,000
31 c/d
8,000 8,000

Apr 1 To Balance 2,000

b/d

Problem: 4

Journalise the following transactions, post them in the Ledger.

1. Ram started business with a capital of Rs. 10,000.

2. He purchased goods from Mohan on credit Rs. 2,000.
3. He paid cash to Mohan Rs. 1,000.
4. He sold goods to Suresh Rs. 2,000.
 5. He received cash from Suresh Rs. 3,000.
6. He further purchased goods from Mohan Rs. 2,000.
7. He paid cash to Mohan Rs. 1,000.
8. He further sold goods to Suresh Rs. 2,000.
9. He received cash from Suresh Rs. 1,000

Solution
JOURNAL

Date Particulars L.F. Debit Credit

Amount Amount
(Rs.) (Rs.)
Cash Account Dr. 10,000
To Capital Account 10,000
(Being commencement of
business)
Purchase Account Dr. 2,000
To Mohan 2,000
(Being purchase of goods
on credit)
Mohan Dr. 1,000
To Cash 1,000
(Being payment of cash to
Mohan)
Suresh Dr. 2,000
To Sales 2,000
(Being good sold to Suresh)
Cash Account Dr. 3,000
To Suresh
3,000
(Being cash received from
Suresh)
Purchases Account Dr. 2,000
To Mohan
2,000
(Being purchase of
goods from Mohan)
Mohan Dr. 1,000
 To Cash Account
1,000
(Being payment of cash to
Mohan)
Suresh Dr. 2,000
To Sales
2,000
Account (Being goods
sold to Suresh)
Cash Account Dr. 1,000
To Suresh
1,000
(Being cash received from
Suresh)
24,000 24,000

LEDGER

CASH ACCOUNT
Dr. Cr.

Date Particular Amoun Date Particular Amoun

t t
Rs. Rs.
To Capital A/c 10,000 By Mohan 1,000
To Suresh 3,000 By Mohan 1,000
To Suresh 1,00 By Balance c/d 12,000
14,000 Mar. 31 14,000
April 1 To Balance b/d 12,000

CAPITAL ACCOUNT

Rs. Rs.
Mar. 31 To Balance c/d By Cash A/c
10,000 10,000
10,000 10,00
Apr. 1 By Balance b/d 0
10,00
0

PURCHASE ACCOUNT

Rs Rs
To Mohan March. 31 By Balance c/d
2,000 4,000
To Mohan
2,000
 4,000 4,000
April To Balance b/d 4,000
1.

MOHAN Account

Rs. Rs.
To Cash 1,000 By Purchases 2,000
To Cash 1,000 By Purchases 2,000
To Balance c/d 2,000
4,000 4,000
Apr. 1 By Balance b/d 2,000

SURESH

Rs. Rs.
To Sales 2,000 By Cash 3,000
A/c.
To Sales 2,000 By Cash 1,000
A/c.
4,000 4,000

SALES ACCOUNT

Rs. Rs.
Mar. By Suresh
4,000 2,000
31 To Balance c/d
By Suresh
2,000
4,000 4,000
April. 1 By Balance b/d
4,000

Problem: 5 Enter the following transactions in the Journal of Ramesh, and post
them to the Ledger.

2006 Rs.
Jan. 1 Assets in hand : Cash Rs. 630; Cash at Bank Rs.
23,100;
Stock of goods; Rs. 26,400; M. & Co., Rs. 6,750.
 Liabilities : Marathi & Co. Rs. 3,880; Ram & Sons
" 2 Rs. 3000. Received a cheque from M. & Co. in full 6,650
settlement
" 4 Sold goods to Chand & Sons on credit 1,440
Carriage paid 35
Sold goods to G. & Co. for cash 3,120
" 5 Brought goods from Ram & Sons on credit 4,000
Paid Marathi & Co. by cheque in full settlement 3,800
" 6 Bought goods from Chatterjee 6,300
" 13 Returned goods to Chatterjee (not being up to 300
specifications)
" 16 Goods used personally by proprietor 50
" 17 Sold goods to M. & Co 5,000
" 20 Cheque received from Chand & Sons 1,440
" 22 Bank advises Chand & Sons cheque returned
unpaid
" 24 Cash deposited with bank 2,000
" 27 Cheque sent to Chatterjee (Discount allowed Rs. 5,850
150)
" 31 Paid salaries 600
Paid rent 300
Drew for personal use out of bank 500

Solution :

Journal

Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)

2006
Jan. Cash A/c Dr. 630
1
Bank A/c Dr. 23,100
Stock of Goods A/c Dr. 26,400
M. & Co. Dr. 6,750
 To Marathi & 3,880

Co. To Ram & 3,000

Sons 50,000

To Ramesh's Capital A/c

(Being balances of various
2 6,650
assets & liabilities brought
100
forward)
Bank A/c Dr.
Discount Allowed A/c Dr.
To M. & Co. 6,750
(Being a cheque received
from M. & Co. & Discount
allowed)
4 Chand & Sons A/c Dr. 1,440
To Sales A/c 1,440
(Being goods sold on credit)
4 Carriage Outwards A/c Dr. 35
To Cash A/c 35
(Being the carriage paid)
4 Cash A/c Dr. 3,120
To Sales A/c 3,120
(Being goods sold for cash)
5 Purchases A/c Dr. 4,000
To Ram & Sons 4,000
(Being goods purchased on credit)
5 Marathi & Co. A/c Dr. 3,880
To Bank A/c 3,800
To Discount A/c 80
(Being payment made to Marathi
& Co. in full settlement &
discount received)
6 Purchases A/c Dr. 6,300
To Chatterjee 6,300
(Being goods purchased on credit)
13 Chatterjee Dr. 300
To Returns Outwards A/c 300
(Being goods returned to Chatterjee)

16 Drawings A/c Dr. 50

To Purchases A/c 50
(Being goods
withdrawn for
personal use)
17 M. & Co. Dr. 5,000
To Sales A/c 5,000
(Being goods sold on credit)
20. Bank A/c Dr. 1,440
To Chand & Sons A/c 1,440
(Being a cheque received
from Chand & Sons)
22 Chand & Sons A/c Dr. 1,440
To Bank A/c 1,440
(Being the cheque of Chand
& Sons dishonoured)
24 Bank A/c Dr. 2,000
To Cash A/c 2,000
(Being cash deposited into bank)
27 Chatterjee A/c Dr. 6,000
To Bank A/c 5,850

To Discount Received A/c 150

(Being payment made to

Chatterjee and discount
received)
31 Salaries A/c Dr. 600
To Cash A/c 600
(Being salaries
31 paid) 30
Rent A/c Dr. 0
To Cash A/c 300
(Being rent paid)
31 Drawings A/c Dr. 500
To Bank A/c 500
(Being cash withdrawn from
bank for personal use)

Ledger of Ramesh

Dr. Capital Account Cr.

Date Particulars J.F Rs. Date Particulars J.F. Rs.

.
2006 2006
Jan. To Balance 50,000 Jan.1 By Balance 50,00
31 c/d b/f 0
50,000 50,00
Feb. 1 0
By Balance 50,00
b/d 0

Dr. Stock of Goods Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. To Balance b/f 26,40 Jan.31 By Balance 26,40
 0 c/d 0
1
26,40 26,40
Balance b/d 0 0
Feb.1 26,40
0
Dr. Cash Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. 1 To Balance b/f 630 Jan. By Carriage
4
Out- wards
4 To Sales A/c 3,120 35
A/c
24 2,000
By Bank
31 600
31 A/c By 300
31 Salaries A/c 815
3,750 By Rent A/c 3,750
Feb.1 To Balance b/d 815 By Balance
c/d

Dr. Bank Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. 1 To Balance b/f 23,10 Jan. By Marathi & 3,800
0 5 Co.
2 To M. & Co. 6,650 22 By Chand & 1,440
Sons
20 To Chand & 1,440 27 By Chatterjee 5,850
Sons
24 To Cash A/c 2,000 31 By Drawings 500
31 By Balance 21,60
c/d 0
33,19 33,19
0 0
Feb.1 Balance b/d 21,60
0

Dr. M. & Co.'s Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. 1 To Balance b/f 6,750 Jan. 1 By Bank 6,650
17 To Sales A/c 5,000 2
 A/c By 100
Discount 5,000
11,75 Allowed 11,75
0 0
A/c By
Feb.1 To Balance b/d 5,000
Balance c/d
Dr. Marathi & Co.'s Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. 5 To Bank 3,800 Jan. 1 By Balance 3,880
A/c To b/f
5
Discount
80
Received A/c
3,880 3,880

Dr. Ram & Sons's Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. 1 By Balance 3,000
b/f
Jan. To Balance 7,000 5 By Purchase 4,000
31 c/d A/c
7,00 7,000
0
Feb. 1 By Balance 7,000
b/d

Dr. Chand & Sons' Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.
2006 2006
Jan.4 To Sales A/c 1,44 Jan. By Bank A/c 1,44
0 20 0
22 To Bank A/c 1,44 31 By balance 1,44
0 c/d 0
2,88 2,88
0 0
Feb. 1 To Balance 1,44
b/d 0

Dr. Chatterjee's Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. To Returns Jan. By Purchases 6,300
13 Outwards 6 A/c
300
27 A/c 5,850
27 To Bank
A/c To 150
Discount 6,300 6,300
Received A/c
Dr. Purchases Account Cr.

Dat Particulars J.F. Rs. Date Particulars J.F. Rs.

e
200 2006
6
Jan. To Ram & Sons 4,000 Jan.1 By Drawings 50
5 6 A/c
6 To Chatterjee 6,300 Jan. By Balance 10,25
31 c/d 0
10,30 10,30
0 0
Feb. To Balance b/d 10,25
1 0

Dr. Sales Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006
Jan. 4 By Chand & /c 1,440
Sons
4 By Cash A/c 3,120
Jan. To Balance 9,56 17 By M. & Co. 5,000
31 c/d 0
9,56 9,560
0
Feb.1 By Balance 9,560
b/d

Dr. Discount Allowed Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. To M. & Co. 100 Jan. By Balance 100
2 100 31 c/d 100
To Balance 100
Feb. 1

c/d
Dr. Carriage Outwards Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. To Cash 35 Jan. By Balance 35
4 35 31 c/d 35
A/c To 35
Feb. 1
Balance b/d
Dr. Discount Received Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. 5 By Marathi & 80
Co.
Jan. To Balance 230 27 By Chatterjee 150
31 c/d A/c
230 230
Feb. 1 By Balance 230
b/d

Dr. Return Outwards Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. To balance 300 Jan. By 300
31 c/d 300 13 300
Chatterjee 300
Feb. 1
By Balance

b/d

Dr. Drawings Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. To Purchases 50
16 A/c
31 To Bank A/c 500 Jan. By Balance 550
31 c/d
550 550
Feb. To Balance 550
1 b/d

Dr. Salaries Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.
2006 2006
Jan. To Cash 600 Jan. By Balance 600
3 600 31 c/d 600
A/c To 600
Feb.
1
Balance b/d
Dr. Rent Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2006 2006
Jan. To Cash 300 Jan. By Balance 300
31 300 31 c/d 300
A/c To 300
Feb.
1
Balance b/d