Practical Problems of Secondary Book (Ledger)

Format of a ledger sheet

The format of a ledger sheet is as follows :

POSTING OF JOURNAL PROPER INTO LEDGER

You know that the purpose of opening an account in the ledger is to bring all related items of this account which might have been recorded in different books of accounts on different dates at one place. The process involved in this exercise is called posting in the ledger. This procedure is adopted for each account. To take the items from the journal to the relevant account in the ledger is called posting of journal.

Following procedure is followed for posting of a journal to ledger :

1. Identify both the accounts ‘debit’ and credit of the journal entry. Open the two accounts in the ledger.

2. Post the item in the first account by writing date in the date column, name of the account to be credited in the particulars column and the amount in the amount column of the ‘debit’ side of the account.

3. Write the page number of the journal from which the item is taken to the ledger in Folio column and write the page number of the ledger from which account is written in L.F. column of the journal.

4. Now take the second Account and give the similar treatment. Write the date in the ‘date’ column, name of the account in the ‘amount’ column of the account on its credit side in the ledger.

5. Write page number of journal in the ‘folio’ column of the ledger and page number of the ledger in the ‘LF’ of column of the journal.

Illustration 1

Journalise the following transactions and post them in the ledger

2006

• January 1 Commenced business with cash 50000
• January 3 Paid into bank 25000 
• January 5 Purchased furniture for cash 5000
• January 8 Purchased goods and paid by cheque 15000
• January 8 Paid for carriage 500
• January 14 Purchased Goods from K. Murthy 35000
• January 18 Cash Sales 32000 January 20 Sold Goods to Ashok on credit 28000
• January 25 Paid cash to K. Murthy in full settlement 34200
• January 28 Cash received from Ashok 20000
• January 31 Paid Rent for the month 2000
• January 31 Withdrew from bank for private use 2500

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