CBSE Class 11 Accountancy Preparation Of Ledger Trial Balance Concepts And Illustrations

PREPARATION OF LEDGER, TRIAL BALANCE AND

BANK RECONCILIATION STATEMENT

 “Ledger is a book which contains all accounts of the business enterprise whether Personal, Real or Nominal.”

INTRODUCTION After recording the business transaction in the Journal or special purpose Subsidiary Books, the next step is to transfer the entries to the respective accounts in the Ledger. Ledger is a book where all the transactions related to a particular account are collected at one place.

LEDGER Definition: The Ledger is the main or principal book of accounts in which all the business transactions would ultimately find their place under various accounts in a duly classified form. According to L.C. Cropper,” The book which contains a classified and permanent record of all the transactions of a business is called the ledger.” 

 By this classification / collective effect we are able to know the following –

 How much amount is due from each customer and how much amount the firm has to pay to each supplier/ creditor.

 The amount of Purchases and Sales during a particular period.

 Amount paid or received on account of various items.

 Ultimate position of Assets and Capital. 

 Each ledger account is divided into two equal parts.

Left Hand Side--Debit side (Dr) Right Hand Side-- Credit side (Cr) POSTING IN THE LEDGER This will be dealt separately from Journal Entries and each Subsidiary Book. Case I – Posting from Journal Entries.

 If an account is debited in the journal entry, the posting in the ledger should be made on the debit side of that particular account. In the particular column the name of the other account (which has been credited in the Journal entry) should be written for reference.

 For the A/c credited in the Journal entry, the posting in the ledger should be made on the credit side of that particular A/c. In the particulars column, the name of the other account that has been debited (in the Journal entry) is written for reference.

Please click the link below to download pdf file for CBSE Class 11 Accountancy Preparation Of Ledger Trial Balance Concepts And Illustrations.