DK Goel Solutions Class 11 Accountancy Chapter 13 Ledger

 Short Answer Question

Question 1. Distinguish between Journal and Ledger.

Solution  1:

Question 2. Enumerate four advantages of Ledger.

Solution 2:

Below are the advantages of ledger:-

(1) All accounts are opened on separate pages in this book. Hence, all the transactions pertaining to an account are collected at one place in the ledger.

(2) A trail balance can be prepared with the help of ledger balances which helps in ascertaining the arithmetical accuracy of the accounts.

(3) A trading and profit and loss account can only be prepared with the help of ledger balances.

(4) A balance sheet can also be prepared with the help of ledger balances which depicts the financial position of the business.

Question 3. What are the rules of posting in the Ledger?

Solution  3:

Below are the rules of posting in the ledger:-

(i) All transactions relating to an account should be entered at one place. Two separate accounts should no the opened for posting transactions relating the same account.

(ii) The word ‘To’ is used before the accounts which appear on the debit side of a account. Similarly, the word ‘By’ is used before the accounts which appear on the credit side of an account.

(iii) If an account has been debited in the Journal entry, the posting in the ledger should also be made on the debit side of such account. In the particulars columns, the name of the other account which has been credited in the journal entry should be written for reference.

(iv) If an account has been credited in the Journal entry, the posting in the ledger should also be made on the credit side of such account. In the particulars columns, the name of the other account which has been debited in the journal entry should be written for reference.

(v) Similar amount which has been posted on the debit side of an account should also be posted on the credit side of another account.

Question 4. What are the purposes of posting J.F. number at the time entries are posted to the accounts.

Solution  4: Journal Folio (J.F.) Column in the ledger records Page No. of the journal from which the posting to the Ledger has taken place. Purpose of posting J.F. number is that it provides a ready reference for tracing the page of journal from where the entry has been posted.

Question 5. Explain the procedure of balancing the personal accounts.

Solution  5:

An Account is balanced like we have to add the bigger side either debit or credit whichever may be and write down the bigger one in the parallel column. The debit column if bigger than the credit column. The difference is written on the credit side as 'By Balance c/d'. The totals are then entered in the two columns opposite one another and then on the debit side, the balance is written as 'To Balance b/d' to show the debit balance in hand in the beginning of the next period or vice versa for the credit balance.

Question 6. Prepare a Compound Entry with the help of imaginary figures and show in posting.

Solution  6:

Question 7. Prepare on Opening Entry with the help of imaginary figures and show its posting.

Solution  7:

Question 8. Prepare a Purchase Book with at least two in it and show its posting.

Solution  8:

Question 9. Prepare a Sales Book with at least two items in it and show its posting.

Solution  9:

Numerical Questions

Question 1. Journalise the following transactions, post them into Ledger, balance the accounts and prepare a Trial Balance :−

Solution 1:   

Question 2.  Following balances appeared in the books of Ram & Shyam on January 1, 2017 :−

Assets : Cash in hand Rs. 30,000; Stock Rs. 36,000; Lal Chand Rs. 7,600; Mukesh Khanna Rs. 16,200; Furniture Rs. 8,000.

Liabilities : Ghanshyam Rs. 6,000; Vinod Rs. 8,000.

Following transactions took place during Jan. 2017 :−

Journalise the above transactions, post them into Ledger, balance them and prepare a Trial Balance.

Solution 2:

Point of Knowledge:-

A Cash Account is balanced like any other account. The debit column is always bigger than the credit column. The difference is written on the credit side as 'By Balance c/d'. The totals are then entered in the two columns opposite one another and then on the debit side, the balance is written as 'To Balance b/d' to show the cash balance in hand in the beginning of the next period.

Question 3. Prepare Journal Entries of the following postings :-

Solution 3:

Point of Knowledge:-

In an account, transactions of one nature are posted or summarized. All the accounts put together constitute a 'Ledger'. A Ledger may be defined as a "book or register which contains, in a summarized and classified form, a permanent record of all transactions." It is the most important book of accounts, since, the Trial Balance is drawn from it and from the Trial Balance, and Financial Statements are prepared. Hence, the Ledger is called the Principal Book.

Question 4.   Enter the following transactions in a Double Column Cash Book and Journal Proper and post them into Ledger:-

May 1              Balance of Cash in Hand Rs. 12,400; Bank Overdraft Rs. 36,000.

3                  Direct deposit by Mr. Ganesh in our bank account Rs. 10,000. Discount allowed Rs. 200.

5                  Issued a cheque of Rs. 7,700 to Mr. Suresh in full settlement of his account of Rs. 8,000.

6                  Received a cheque from X for Rs. 12,000. Discount allowed Rs. 500. This cheque was deposited into bank on 7th May.

8                  Received Cash Rs. 22,000 and cheque of Rs. 8,000 for cash sale.

12                Cash sale Rs. 70,000 of which Rs. 55,000 banked.

15                Cheque received on 8th May endorsed to Mr. Sunil. Discount received Rs. 150.

20                Discounted a B/R of Rs. 10,000 at 1% through bank.

24                Cheque received from X dishonoured, Bank debits Rs. 20 in respect of bank charges.

25                Purchased goods for Rs. 50,000 at a trade discount of 10%. Payment was made in cash.

2                  Withdrew from bank Rs. 10,000 for office use and Rs. 2,000 for personal use.

31                Interest debited by Bank Rs. 4,500.

Solution 4:

Point of Knowledge:-

1. Identify in the Ledger the account to be debited.

2. Enter the date of the transaction in the 'Date' column on the debit side of the account.

3. Write the name of the account which has been credited in the respective entry in the 'Particulars' column on the debit side of the amount as 'To (name of account credited)'.

4. Record the page number of the Journal where the entry exists in the Journal folio (J,F.) column.

5. Enter the relevant amount in the 'Amount' column on the debit side.

Question 5. Record the following transaction in the Purchases Book of Modern Furniture House, New Delhi assuming CGST @ 6% and SGST @ 6% and post it into Ledger:

Solution 5:   Purchases Book of Modern Furniture House, New Delhi

Point of knowledge:-

1. Identify in the Ledger the account to be debited.
2. Enter the date of the transaction in the 'Date' column on the debit side of the account.
3. Write the name of the account which has been credited in the respective entry in the 'Particulars' column on the debit side of the amount as 'To (name of account credited)'.
4. Record the page number of the Journal where the entry exists in the Journal folio (J,F.) column.
5. Enter the relevant amount in the 'Amount' column on the debit side.
6.  

Question 6. Record the following transaction in the Sales Book of Karunakaran & Sons, Chennai (Tamilnadu) assuming CGST @ 90% and SGST @ 9% and post them into Ledger :-

Solution 6:  

Point of knowledge:-

1. Identify in the Ledger the account to be credited.
2. Enter the date of the transaction in the 'Date' column on the credit side of the account.
3. Write the name of the account which has been debited in the respective entry in the 'Particulars' column on the credit side of the account as 'By (name of account debited)'.
4. Record the page number of the Journal where the entry exists in the Journal folio (J.F.) column.
5. Enter the relevant amount in the 'Amount' column on the credit side.

Question 7. Enter the following transactions in Return Outward Book of Modern Furniture House, Udaipur (Rajasthan) assuming CGST @ 6% and SGST @ 6% and post it into Ledger:-

Solution 7:   

Question 8. Enter the following transactions in Return Inward Book of M/s Kanitkar & Co. of Mumbai (Maharashtra) assuming CGST @ 2.5% and SGST @ 2.5% and post it into Ledger:

Solution 8: