Classification

As per Dual Aspect Concept

Every transaction has two Accounts

Segregation of all accounts

Ledger
Classification
In a book called Ledger
Preparing Ledger Accounts
Transferring Journal entries into Ledger
Posting

Ledger
Verifies the Double entry / Dual aspect
system

Compiles all related information to a particular

account

Includes Posting the entries &

Casting& Balancing the accounts.

Ledger
A Principal books of accounts
Book of Second Entry
Book for the Analytical record
( Note : Journal - Book for Chronological
Record )

Specimen of Ledger
A T shape Account, having two sides
Debit & Credit

Process of ledger
For Opening balance, Balance Brought
Down/Forward is used.
For Closing balance, Balance Carried
Down/Forward is used.
The closing Balance is of the side having
higher total
Generally Nominal Accounts are not
balanced

Question

Prepare the Stationery Account of a firm for

the year ended 31.12.2015 duly balanced off,
from the following details:

2015

Jan. 1

Inventory

480

April 5

Purchase of stationery by
cheque

800

Nov. 15

Purchase of stationery on
credit from Five Star
Stationery Mart

1,280

Dec. 31

Inventory

240

Summarizing
At the period end
the list of balances of all accounts

Trial Balance
(compilation of all transactions & accounts)

Trial balance
The balances(Dr./Cr.) (from Ledger)- transferred to
Trial Balance
Purpose : To verify the arithmetical accuracy
Rectification of Errors
Basis of Financial Statements
(Agreement of Trial Balance does not mean that
there are no errors left at all)
(Any Difference in Trial Balance- Suspense
A/C)

Format of Trial Balance

Balance Method:

Format of Trial Balance

Total & Balance Method:

Format of Trial Balance

Total Method:

Methods of Trial Balance

Balance Method
Ledger Accounts

(Dr/Cr Balances from

are Transferred)

Total Method
The totals(without balancing) of both the
sides of accounts
Balance & Total
Method. (The totals & Balances, both are
recorded)

Balances of Trial Balance

Debit Balance : An Asset/ Debtor/ Expenses

Credit Balance: A Liability/ Creditor/

Incomes

MCQs
Q.1. ____________is prepared to ascertain the
arithmetical accuracy of posting and
balancing of accounts

MCQs
Q.2. The left hand side of an account is known
as _________ and the right hand side of an
account is known as ________

MCQs
Q.3. Income tax in case of a sole trader is
treated as _____

MCQs
Q.4. On March 31, 2010 Narain Enterprises
purchased a loader from Laxmi Motors for Rs.
1,75,000 which is shown in the balance sheet
as on 31st March, 2010. This is

MCQs
Q.5. Payment received from debtor

MCQs
Q.6. Market value of investment is shown
outside the Balance Sheet as a footnote
according to

MCQs
Q.7. Which of the following is a credit
transaction?

MCQs
Q.8. Sales of office furniture should be
credited to:

MCQs
Q.9. ______. is a summary of all assets and
liabilities on a particular date.

MCQs
Q.10. Which of the following lists the balance
and the title of accounts given in the ledger,
on a given date?