More

    Journal and Ledger Account

    - Advertisement -

    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
    - Advertisement -

    Recent Articles

    Current Affairs Daily

    Today's Current Affairs and General Knowledge Current Affairs Daily Digest is a collection of important current...

    Bombay Stock Exchange (BSE) of India

    The oldest stock market in Asia, BSE stands for Bombay Stock Exchange and was initially known as "The Native Share and Shock Brokers Association"....

    Transportation in India: India transport sector

    India’s Transport Sector, as it caters to the need of nearly 1.1 billion people, is large and diverse. A smooth and co-ordinated...

    Biography of Mahatma Gandhi – A Journey from Mohandas to Mahatma

    On the evening of 30th January, 1948, at his daily prayer meeting Gandhiji was shot dead by a young man from Pune named Nathuram...

    Early Entrepreneurs of India

    The first cotton mill in Bombay came up in 1854 and it went into production two years later. By 1862, four...

    Related Stories

    Stay on op - Ge the daily news in your inbox