Ledger - Class 9 Elements Of Book Keeping And Accountancy - Extra Questions

Fill in the blanks with appropriate words in the following sentences.
The difference between the debit and credit side of an account is called ________.

Balancing Figure 
"Balance c/f" is usually used as a balancing line to calculate the closing balance figure. B/d means brought down. You will normally see "b/d" as "Balance b/d" at the top of a T-account. This shows the amount brought down from a previous period - i.e. the opening balance of an account.


What are the advantages of opening a bank account?

Saving Bank accounts are useful as :-
 1. We can keep money in the account, draw and use money when we need.  
 2. Money deposited in an account grows with some interest.
 3. Money is safer in bank than at home, thieves cannot steal
 4. We can transfer money if required (like paying fees) to another account holder.
 5. Signature in the bank account is used as a proof for signature for young persons.


Write the process of preparing ledger from a journal.

The process of preparing ledger from Journal can be explained with the help of an example. Let us suppose that machinery is purchased from Mr. X, so, the journal entry will be:
Machinery A/c Dr. 
     To Mr. X A/c
In this example, Machinery Account is debited and Mr. X account is credited. The process of preparing ledger from the journal entry is as follows:
Account which is debited in the entry:
Step 1: Identify the account in the ledger that is debited, i.e., 'Machinery Account'.
Step 2: Enter date in the debit side of the 'Machinery Account' in the 'Date' column.
Step 3: Enter the name of the account as 'Mr. X Account' (which is credited in the entry) in the 'Particulars' column in the debit side of the Machinery Account.
Step 4: Enter the page number of the journal, where the entry is recorded in the 'J/F.' (journal folio) column. 
Step 5: Post the corresponding amount in the 'Amount' column, which is recorded against 'Machinery Account' in the journal entry.

Account which is credited in entry:
Step 1: Identify the account in the ledger that is credited, i.e., 'Mr. X Account'.
Step 2: Enter date in the credit side of 'Mr. X Account' in the 'Date' column.
Step 3: Enter the name of the account as 'Machinery Account' (which is debited in the entry) in the 'Particulars' column in the credit side of the 'Machinery Account'.
Step 4: Enter the page number of the journal where the entry is recorded in the 'J.F.' (journal folio) column.
Step 5: Post the corresponding amount in the 'Amount' column, which is recorded against 'Mr. X account' in the journal entry.


On January $$15$$, $$2011$$, Kartar sold goods for Rs. $$30,000$$ to Bhagwan and drew upon him three bills of exchanges of Rs. $$10,000$$ each payable after one month, two months and three months respectively. The first bill was retained by Kartar till its maturity. The second bill was endorsed by him in favour of his creditor Ratna and the third bill was discounted by him immediately at the rate of $$6\%$$ per annum. All the bills were met by Bhagwan.
Journalise the above transactions in the books of Kartar and Bhagwan. Also prepare ledger accounts in the books of Kartar and Bhagwan.

In the Books of Kartar
Journal Entries
DateParticularsLFAmt.(Dr)Amt.(Cr)
$$2011$$
Jan $$15$$Bhagwan                      Dr
To Sales A/c
(Being goods sold to Bhagwan)
$$30,000$$$$30,000$$
Jan $$15$$Bills Receivable Ist A/c                      Dr
Bills Receivable IInd A/c                            Dr
Bills Receivable IIIrd A/c                            Dr
To Bhagwan
(Being three acceptance received each for $$10,000$$)
$$10,000$$
$$10,000$$
$$10,000$$
$$30,000$$
Jan $$15$$Ratan                           Dr
To Bills Receivable IInd A/c
(Being IInd bill endorsed in favour of Ratan)
$$10,000$$$$10,000$$
Jan $$15$$Bank A/c                          Dr
Discount A/c                        Dr
To Bills Receivable IIIrd A/c
(Being IIIrd bill discounted by the bank at the rate of $$6\%$$ per annum)
$$9,850$$
$$150$$
$$10,000$$
Jan $$18$$Cash A/c                        Dr
To Bills Receivable Ist A/c
(Being payment received on maturity)

$$10,000$$$$10,000$$

Bhagwan's Account
DateParticularsJFAmt.(Rs.) Dr.DateParticularsJFAmt.(Rs.) Cr.
$$2011$$$$2011$$
Jan $$15$$To Sales A/c$$30,000$$Jan $$15$$By Bills Receivable Ist
By Bills Receivable IInd
By Bills Receivable IIIrd
$$10,000$$
$$10,000$$
$$10,000$$

$$30,000$$$$30,000$$

In the Books of Bhagwan
Journal Entires
DateParticularsLFAmt.(Dr.)Amt.(Cr)
$$2011$$
Jan $$15$$Purchase A/c                 Dr
To Kartar
(Being goods purchased)
$$30,000$$$$30,000$$
Jan $$15$$Kartar                          Dr
To Bills Payable Ist A/c
To Bills Payable IInd A/c
To Bills Payable IIIrd A/c
(Being three acceptances given each for $$10,000$$)
$$30,000$$$$10,000$$
$$10,000$$
$$10,000$$
Feb $$18$$Bills Payable Ist A/c                  Dr
To Cash A/c
(Being Ist bill paid on maturity)
$$10,000$$$$10,000$$
Mar $$18$$Bills Payable IInd A/c              Dr
To Bank A/c
(Being IInd bill paid on maturity)
$$10,000$$$$10,000$$
Apr $$18$$Bills Payable IIIrd A/c               Dr
To Bank A/c
(Being IIIrd bill met on maturity)
$$10,000$$$$10,000$$

Kartar's Account
DateParticularsJFAmt.(Rs.) Dr.DateParticularJFAmt.(Rs.) Cr.
$$2011$$$$2011$$
Jan $$15$$To Bill Payable Ist
To Bill Payable IInd
To Bills Payable IIIrd
$$10,000$$
$$10,000$$
$$10,000$$

$$30,000$$
Jan $$15$$By Purchase A/c$$30,000$$




$$30,000$$



Which is the book of an account in which all ledger accounts are maintained?

A ledger is a book of account; in which all types of accounts relating to assets, liabilities, capital, expenses and revenues are maintained. It is a complete set of accounts of a business enterprise.
A ledger is a book of accounts that contains all the ledger accounts of the business, whether they are real, nominal or personal. All the entries from Journal are posted to their respective ledger accounts.


What is the Bound book of accounts?

Ledger is generally maintained in the form of a bound register. First few pages of the ledger has ordinary horizontal ruling for indexing. Remaining pages are ruled like an account and is consecutively numbered. 
The index pages are used for writing the names of accounts and the Folio No. (Page No.) where a particular account has been opened for easy location. 
The ledger may also be maintained in loose-leaf form instead of one bound book.
A ledger may be kept in the form of bound register, cards or punched sheets in a loose leaf binder. 
Hence, a ledger is also known as a bound book of accounts.


What is the left hand side of an account?

Ledger is a book of account; in which all types of accounts relating to assets, liabilities, capital, expenses and revenues are maintained. It is a complete set of accounts of a business enterprise.

A ledger account has two sides, namely left hand and right hand side. 
Left hand side is called the debit side where the right hand side is called the credit side.


Write the meaning of Ledger posting.

All the business transactions are first recorded in Journal or Subsidiary books in a chronological order when they actually take place and from there the transactions of similar nature are transferred to Ledger and this process of transferring is called Ledger Posting.


Answer in one sentence only :
What do you mean by Ledger?

Ledger is the book where the transactions of similar nature pertaining to a person, asset, liability, income or expenditure are drawn from the journal or subsidiary book where the transactions are recorded in a chronological order an posted account wise in the ledger account. 
Ledger maintains all types of account, i.e. Personal, Real and Nominal account. 

When transactions are recorded in the journal (Book of Original entry), these are transferred or posted to their respective accounts in ledgers. These are called Book of Secondary Entry. 
Ledger contains all accounts of a business enterprise, irrespective of whether they are personal, real or nominal.


What is Ledger?

Ledger is the collection of different accounts of assets, liabilities, capital, revenue and expenses. When transactions are recorded in the Journal (Book of Original Entry), these are transferred to their respective accounts  in Ledgers. 
These are called Book of Secondary or Final Entry. Ledger contains all accounts of a business enterprise, irrespective of whether they are personal, real or nominal.


On January $$15$$, $$2011$$, Raghu sold goods worth Rs $$35,000$$ to Devendra and drew upto the latter three bills of exchanges. The first bill was for Rs $$5,000$$ payable after one month, the second bill was for Rs $$20,000$$ payable after three months and third bill for balance amount for $$4$$ months. Raghu endorsed the first bill in favour of his creditor, Dewan in full settlement of a debt of Rs $$5,200$$. The second bill was discounted by Raghu at the rate of $$6\%$$ per annum and the third bill was retained by Raghu till the date of maturity. Devendra dishonoured the bill on maturity and the bank paid Rs $$30$$ as noting charges. Four days before the maturity of the third bill Raghu, sent the same for collection to his bank. The third bill was also dishonoured by Devendra and the bank paid Rs. $$200$$ as noting charges. Five days after the dishonour of the bill. Devendra paid the entire amount due to Raghu along with interest Rs $$1,000$$ for this purpose Devendra obtained a short term loan from his bank.
You are requested to record the necessary Journal entries in the books of Raghu.

Journal entries in the books of Raghu:
Jan. 15, 2011
a) Devendra A.c Dr.                             35,000
               To Sales A/c                                        35,000
(Goods sold to Devendra)

b) Bills Receivable 1 (1 month)A/c Dr.                  5,000
    Bills Receivable 2 (3 months) A/c Dr.           20,000
    Bills Receivable 3 (4 months) A/c Dr.            10,000
                     To Devendra A/c                                              35,000
(Bills receivable received)

c) Dewan A/c Dr.                                      5,200
               To Bills Receivale 1 A/c                        5,000
                To Discount A/c                                      200
(First bill endorsed to Dewan)
                       
d) Bank A/c Dr.                                        19,700
    Discount A/c Dr.                                      300
                 To Bills Receivable 2                          20,000
(Second bill discounted at 6%)

e) Devendra A/c Dr                                20,030
                   To Bank A/c                                       20,030
(Second bill dishonoured and noting charges paid by bank)

f) Bill sent for collection A/c Dr.            10,000
                   To Bills Receivable 3 A/c                 10,000
(Third bill sent for collection)

g) Devendra A/c Dr.                                  10,200
               To Bank A/c                                              10,200
(Third bill dishonoured and noting charges paid by bank)

h) Bank A/c Dr.                                               20,030
                To Devendra A/c                                         20,030
(Second bill paid along with interest by Devendra)

i) Bank A/c Dr.                                            10,200
                To Devendra A/c                                    10,200
(Third bill paid after it was dishonoured)

j) Interest A/c Dr.                                                1,000
               To Bills Receivable A/c                                 1,000
(Interest amount paid for the delay in settling the bills)




What is the right hand side of an account?

A ledger is a book of account; in which all types of accounts relating to assets, liabilities, capital, expenses and revenues are maintained. It is a complete set of accounts of a business enterprise. 
Every account is divided into two sides.
The right side of an account is termed as credit side and is written as Cr. 
It is often called a T-shape account, as it is in the T-shape format.


Which is the book which is maintained by the businessman for keeping individual records of persons, properties, expenses,incomes etc ?

All the accounts identified on the basis of transactions recorded in different journals/books such as Cash book, Purchase book, Sales book etc. will be opened and maintained in a separate book called Ledger. So a ledger is a book of account; in which all types of accounts relating to assets, liabilities, capital, expenses and revenues are maintained. It is a complete set of accounts of a business enterprise.
Thus, from the various journals/books of a business enterprise, all transactions recorded throughout the accounting year are placed in relevant accounts in the ledger through the process of posting of transactions in the ledger, Thus, posting is the process of transfer of entries from Journal/Special Journal Books to ledger.


Class 9 Elements Of Book Keeping And Accountancy Extra Questions