Posting and Balancing of Ledgers: Journal Entries and Ledger Accounts

 

How to make journal entries and ledger accounts

After doing journal entry, total of ledgers and balance of ledgers, a student or learner can prepare ledger accounts easily. Students are suggested to:

Step 1, Prepare journal entries,

Step 2, Transfer all journal entries to related ledgers,

Step 3, Find out debit and credit of ledgers,

Step 4, Put the balancing figure amount either in debit or credit side of ledger,

 

Sometimes debit and credit are equals. In such a condition, no needs to find anything.

 

 

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country  

PROBLEM: 4

Following transactions were given to you SK Traders:

July 5:    Started business with cash Rs 200,000

July 6:    Goods purchased in cash Rs 100,000.

July 7:    Goods purchased from Suman Rs 50,000.

July 8:    Goods sold for Rs 120,000.

Required:   (a) Journal entry; (b) Cash account; (c) Capital account; (d) purchase account; (e) Suman’s account;

(f) Sales account 

[Answer: Balance c/d: Cash = 70,000; Capital = 200,000;

Purchase = 150,000; Suman = 50,000; Sales = 120,000]

SOLUTION:

Journal Entries

In the book of SK Traders

Date	Particulars		LF	Amount Dr	Amount Cr
July 5	Cash account	Dr		200,000
	To Capital account				200,000
	(Being- business started with cash)
July 6	Purchase account	Dr		100,000
	To Cash account				100,000
	(Being- goods  purchased in cash)
July 7	Purchase account	Dr		50,000
	To Suman’s account				50,000
	(Being- goods purchased on credit)
July 8	Cash account	Dr		120,000
	To Sales account				120,000
	[Being- goods sold in cash)

 

.

Dr	Cash Account						Cr
Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
July 5	To Capital account		200,000	July 7	By Purchase account		150,000
July 8	To Sales account		120,000	July 8	By Balance c/d		70,000
			220,000				220,000
July 9	To Balance b/d		70,000

 

.

Dr	Capital Account						Cr
Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
July 5	To Balance c/d		200,000	July 5	By Cash account		200,000
			220,000				200,000
				July 6	By Balance b/d		200,000

 

.

Dr	Purchase Account						Cr
Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
July 5	To Cash account		100,000	July 7	By Balance c/d		150,000
July 7	To Suman’s account		50,000
			150,000				150,000
July 8	To Balance b/d		150,000

 

.

Dr	Suman’s Account						Cr
Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
July 7	To Balance c/d		50,000	July 7	By Purchase account		50,000
			50,000				50,000
				July 8	By Balance b/d		50,000

 

.

Dr	Sales Account						Cr
Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
July 8	To Balance c/d		120,000	July 8	By Cash account		120,000
			120,000				120,000
				July 9	By Balance b/d		120,000

 

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Click on link for YouTube videos topic wise :
Accounting Equation	http://tiny.cc/c89jkz
Basic Journal Entries in Nepali	http://tiny.cc/uaakkz
Basic Journal Entries	http://tiny.cc/8aakkz
Journal Entry and Ledger	http://tiny.cc/caakkz
Ledger Account	http://tiny.cc/haakkz
Subsidiary Book	http://tiny.cc/399jkz
Cash Book	http://tiny.cc/889jkz
Trial Balance and Adjusted Trial Balance	http://tiny.cc/c59jkz
Bank Reconciliation Statement (BRS)	http://tiny.cc/q59jkz
Depreciation	http://tiny.cc/ugakkz
Click on link for YouTube videos chapter wise:
Financial Accounting and Analysis (All videos)	http://tiny.cc/jlersz
Accounting Process	http://tiny.cc/mlersz
Accounting for Long Lived Assets	http://tiny.cc/plersz
Analysis of Financial Statement	http://tiny.cc/slersz

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PROBLEMS   AND   ANSWERS

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country   

Basic Problem: 4A

Following transactions were given to you SK Trading Concern:

July 5:        Started business with bank balance Rs 170,000.

July 6:        Goods purchased worth Rs 100,000 by cheque.

July 7:        Goods purchased from Sarika Rs 50,000.

July 8:        Goods sold for Rs 80,000 and cheque received.

Required:  (1) Journal entry; (2) Bank account; (3) Purchase account; (4) Sarika’s account; (5) Sales account

[Answer: Balance c/d: Bank = 150,000; Purchase = 150,000;

Sarika = 50,000; Sales = 80,000]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country  

PROBLEM: 4B

ABC Grocery House has following transactions:

September 7:      Goods purchased for cash Rs 250,000.

September 8:      Goods purchased from Ganesh Rs 150,000.

September 9:      Goods sold for cash Rs 300,000.

September 10:    Goods sold to Kumar Rs 80,000.

September 11:    Goods returned by Kumar Rs 20,000.

September 12:    Cash received from Kumar Rs 30,000.

September 13:    Cash paid to Ganesh Rs 40,000.

September 14:    Goods returned to Ganesh Rs 20,000.

Required:   (a) Journal entries; (b) Cash account; (c) purchase account; (d) sales account; (e) Ganesh account

[Answer: Balance: Cash = 100,000; Purchase = 400,000;

Sales = 380,000; Ganesh = 100,000]

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