Journal and Ledger Account

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Reading Time: 3 minutes

Example of Journal and Ledger Account Preparation:

Learning Objectives:
  1. How are Journal and Ledger accounts are prepared?
  2. 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