By creating a “Travelling expense” account , all transactions relating to travelling recorded there. In ledger transactions of similar nature are classified and summerised and similar transactions can be find out from single Ledger.Seperate Ledger is opened for each Kind of Account, and a ledger has two sides called, Debit side & Credit Side, Just find out typical ledger formate below.
Let us post the journal book that we had created in earlier lesson in to ledger
Click here to get the journal book
Take the first Entry
01.01.2009 | Cash …..DrTo Capital (being capital brought by Mr john) |
200000.00 | 200000.00 |
In the above example ,You require to open two account
1. Cash Account
2.Capital Account
Cash account is the debit part, So it should be posted in debit side. So we can post this entry in cash Ledger as below.
Cash | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
01/01/09 | To, Capital | 200000 |
Simply this means that cash balance increased 200000 by way of capital brought by john. Or cash account has a balance of 200000.00
Capital is the credit part of this entry , So the posting should be on credit side
Capital | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
01/01/09 | By, john capital | 200000 | |||||
This means that Rs 200000 is liable to pay by the company to the owner of the company.
Balancing of an account
The difference between the two sides of an account is known as account balance. The sum total of all debit entries are exceeds the total of credit entry, the account has a debit balance, and the credit entry exceeds the total of debit balance, account has credit balance.
Like wise let us post all the entries in to Ledger.
See the ledger book after posting all the entries
Land Account | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
02/01/09 | To, Cash | 105000 | |||||
By balance c/d | 105000 | ||||||
105000 | 105000 | ||||||
To Balance B/d | 105000 | ||||||
Cash | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
01/01/09 | To, Capital | 200000 | |||||
12/01/09 | To sales | 25000 | 02/01/09 | By, Land | 105000 | ||
15/01/09 | To,SBI | 10000 | 04/01/09 | By, Stationery | 1000 | ||
06/01/09 | By, rent | 1500 | |||||
07/01/09 | By,capital | 5000 | |||||
08/01/09 | By,staff welfare | 100 | |||||
10/01/09 | By, commision | 500 | |||||
11/01/09 | By,SBI | 15000 | |||||
By balance c/d | 106900 | ||||||
235000 | 235000 | ||||||
To Balance B/d | 106900 | ||||||
Purchase | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
03/01/09 | To, sk Creations | 200000 | |||||
By balance c/d | 200000 | ||||||
200000 | 200000 | ||||||
To Balance B/d | 200000 | ||||||
S.K Creations | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
16/01/09 | To,Purchase return | 5000 | 03/01/09 | By, Purchase | 200000 | ||
To Balance C/d | 195000 | ||||||
200000 | 200000 | ||||||
By balance b/d | 195000 | ||||||
Stationery | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
04/01/09 | To, Cash | 1000 | |||||
By balance c/d | 1000 | ||||||
1000 | 1000 | ||||||
To Balance B/d | 1000 | ||||||
Indian Cotton | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
05/01/09 | To, Sales | 45000 | 13/01/09 | By, SBI | 15000 | ||
14/01/09 | By,Sales return | 2500 | |||||
By balance c/d | 27500 | ||||||
45000 | 45000 | ||||||
To Balance B/d | 27500 | ||||||
Sales | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
05/01/09 | By, Indian Cotton | 45000 | |||||
12/01/09 | By, Cash | 25000 | |||||
To Balance C/d | 70000 | ||||||
70000 | 70000 | ||||||
By balance b/d | 70000 | ||||||
Rent | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
06/01/09 | To, cash | 1500 | |||||
By balance c/d | 1500 | ||||||
1500 | 1500 | ||||||
To,balance b/d | 1500 | ||||||
Capital | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
07/01/09 | To, cash | 5000 | 01/01/09 | By, john capital | 200000 | ||
To Balance C/d | 195000 | ||||||
200000 | 200000 | ||||||
By,balance b/d | 195000 | ||||||
Staff Welfare | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
08/01/09 | To, cash | 100 | |||||
By balance c/d | 100 | ||||||
100 | 100 | ||||||
To,balance b/d | 100 | ||||||
Computer | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
09/01/09 | To, COmputer solution | 30000 | |||||
By balance c/d | 30000 | ||||||
30000 | 30000 | ||||||
To Balance B/d | 30000 | ||||||
Computer solutions | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
10/01/09 | By, Computer | 30000 | |||||
To,balance c/d | 30000 | ||||||
30000 | 30000 | ||||||
Bybalance b/d | 30000 | ||||||
Commision | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
10/01/09 | To, Cash | 500 | |||||
By balance c/d | 500 | ||||||
500 | 500 | ||||||
To,balance b/d | 500 | ||||||
SBI ( Bank ) | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
11/01/09 | To, Cash | 15000 | 15/01/09 | By, Cash | 10000 | ||
13/01/09 | To,Indian Cotton | 15000 | |||||
By balance c/d | 20000 | ||||||
30000 | 30000 | ||||||
To,balance b/d | 20000 | ||||||
Sales Return | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
14/01/09 | To Indian Coton | 2500 | |||||
By,balance c/d | 2500 | ||||||
2500 | 2500 | ||||||
To,balance b/d | 2500 | ||||||
Purchase Return | |||||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
16/01/09 | By SK Creations | 5000 | |||||
To Balance C/d | 5000 | ||||||
5000 | 5000 | ||||||
Bybalance b/d | 5000 | ||||||
If you have any doubts please use our comment section to ask.In the next lesson lets learn how to prepare trail balance.
hi I am Electrical Engineer, I want to use tally for my personal expense and income management any one can guide how to create ledger and voucher entry.
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