Page 78 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes 7.4 Summary

z Ledger is nothing but preliminary book of accounting transactions at which, each account
is separately maintained through the allotment of various pages for exclusive recording.
z Posting is the process of selecting of transactions from Journal on the basis of accounts and
writing them into ledger accounts.

7.5 Keywords

Balancing: Balancing of an account is the difference between the total of debits and total of credits
of an account.

Ledger Posting: It is a process of recording the transactions under one group from the early
process of journalizing.

Ledger: It is the classification of accounts in which various accounts are maintained.
7.6 Self Assessment

Fill in the blanks:
1. Ledger contains various ...................... in it.
2. The process of transfer of entries from Journal and special purpose books to ledger is called
......................

3. Ledger is also called ......................
4. Ledger is a ...................... book of accounting system.
5. Classification of transactions is being done only on the basis of preparing the ......................

.....................................
State whether the following statements are true or false:
6. If the balance of the debit side of the ledger is more than the credit side it is called as Debit
balance ledger

7. Without journalizing, ledgering is not meaningful.
8. Left hand side of ledger account is credit side.
9. Every transaction must be recorded at two places or accounts.
10. Outstanding rent is an example of nominal A/c.

7.7 Review Questions

1. Record the following transactions in the Journal and post them into Ledger of Mr.
Aditya Raj:
2008 `
March 1 Purchase of Goods from Ramautar 3,20,000

March 10 Paid Rent for the month 2,000
March 11 Purchase of Plant 1,00,000
March 12 Paid Salaries 12,000

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