Example of Journal and Ledger Account Preparation:
Learning Objectives:
-
How are Journal and Ledger accounts are prepared?
-
How Ladger Accounts Prepared
Journalise the following transactions and post them to the journal and 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
|
|
|
|
|
|
