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Example of Ledger and Preparing Ledger Accounts:

Learning Objectives:

  1. How are ledger accounts prepared?

Journalise the following transactions and post them to the ledger accounts concerned:

1991    
Jan. 1 Purchased goods for cash 2,000
Jan. 3 Sold goods to Karim 500
Jan. 10 Received from Karim 500
Jan. 15 Purchased machinery for cash 1,000
Jan. 20 Cash sales 300
Jan. 25 Sold goods to Rahim & Sons 600
Jan. 28 Received from Rahim & Sons 590
  Discount allowed 10
Jan. 30 Paid Rent 50
Jan. 31 Paid Salaries 100

Solution:

Date Particulars L.F. Debit Credit
Jan. 1 Purchases Account 12 2,000  
     To Cash Account 13   2,000
  (Goods purchased for cash)      
 
     
Jan. 3 Karim 14 500  
     To Sales Account 15   500
  (Goods sold on credit)      
 
     
Jan. 10 Cash Account 13 500  
     To Karim Account 14   500
  (Cash received)      
 
     
Jan. 15 Machinery Account 16 1,000  
     To Cash Account 13   1,000
  (Machinery purchased)      
 
     
Jan. 20 Cash Account 13 300  
     To Sales Account 15   300
  (Goods sold for cash)      
 
     
Jan. 25 Rahim & Sons 17 600
   To Sales Account 15 600
(Goods sold on credit)
Jan. 28 Cash Account 13 590
Discount Allowed 18 10
   To Rahim & Sons 17 600
(Cash received, discount allowed)
Jan. 30 Rent Account 19 50
   To Cash Account 13 50
(Rent paid)
Jan. 31 Salaries Account 20 100
   To Cash Account 13 100
(salaries paid)
  Total   5,650 5,650

LEDGER ACCOUNT

Purchases Account

Date Particulars J.F. Amount Date Particulars J.F. Amount
1991.
Jan.1
To Cash a/c
30
2,000		        

Cash Account

Date Particulars J.F. Amount Date Particulars J.F. Amount
1991.
Jan.10
Jan.20
Jan.28
To Karim
To Sales a/c
To Rahim & Sons


30
30
30
500
300
590		 1991.
Jan.1
By Purchases a/c
By Machinery a/c
By Rent a/c
By Salaries a/c
30
30
30
30
2,000
1,000
50
100

Karim Account

Date Particulars J.F. Amount Date Particulars J.F. Amount
1991.
Jan.1
To Sales a/c


30


500

 1991.
Jan.10
By Cash a/c


30


500

Sales Account

Date Particulars J.F. Amount Date Particulars J.F. Amount
 
 
 
 		 1991.
Jan.3
By Karim
By Cash a/c
By Rahim & Sons
30
30
30


500
300
600

Machinery Account

Date Particulars J.F. Amount Date Particulars J.F. Amount
1991.
Jan.15
To Cash Account
30


1,000

        

Rahim & Sons Account

Date Particulars J.F. Amount Date Particulars J.F. Amount
1991.
Jan.25
To Sales a/c


30


600

 1991.
Jan.28
By Cash a/c
By Discount a/c		  


590
10

Discount Account

Date Particulars J.F. Amount Date Particulars J.F. Amount
1991.
Jan.28
To Rahim & Sons


30


10

  
 		  


 

Rent Account

Date Particulars J.F. Amount Date Particulars J.F. Amount
1991.
Jan.30
To Cash a/c


30


50

  
 		  


 

Salaries Account

Date Particulars J.F. Amount Date Particulars J.F. Amount
1991.
Jan.31
To Cash a/c


30


2,000

      


 

You may also be interested in other articles from "Ledger" chapter:

  1. Definition and Explanation of Ledger

  2. Advantages of Ledger

  3. Difference Between Ledger and Journal

  4. Form of Ledger and Method of Posting

  5. Example of Ledger Accounts | Preparing Ledger Accounts

  6. Preparing a Trial Balance | Accuracy of Ledger

 

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