Example of Ledger and Preparing Ledger Accounts:

Learning Objectives:

Journalise the following transactions and post them to the ledger accounts concerned:

1991
Jan. 1	Purchased goods for cash	2,000
Jan. 3	Sold goods to Karim	500
Jan. 10	Received from Karim	500
Jan. 15	Purchased machinery for cash	1,000
Jan. 20	Cash sales	300
Jan. 25	Sold goods to Rahim & Sons	600
Jan. 28	Received from Rahim & Sons	590
	Discount allowed	10
Jan. 30	Paid Rent	50
Jan. 31	Paid Salaries	100

Solution:

Date	Particulars	L.F.	Debit	Credit
Jan. 1	Purchases Account	12	2,000
	To Cash Account	13		2,000
	(Goods purchased for cash)

Jan. 3	Karim	14	500
	To Sales Account	15		500
	(Goods sold on credit)

Jan. 10	Cash Account	13	500
	To Karim Account	14		500
	(Cash received)

Jan. 15	Machinery Account	16	1,000
	To Cash Account	13		1,000
	(Machinery purchased)

Jan. 20	Cash Account	13	300
	To Sales Account	15		300
	(Goods sold for cash)

Jan. 25	Rahim & Sons	17	600
	To Sales Account	15		600
	(Goods sold on credit)

Jan. 28	Cash Account	13	590
	Discount Allowed	18	10
	To Rahim & Sons	17		600
	(Cash received, discount allowed)

Jan. 30	Rent Account	19	50
	To Cash Account	13		50
	(Rent paid)

Jan. 31	Salaries Account	20	100
	To Cash Account	13		100
	(salaries paid)

	Total		5,650	5,650

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1991. Jan.1	To Cash a/c	30	2,000

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1991. Jan.10 Jan.20 Jan.28	To Karim To Sales a/c To Rahim & Sons	30 30 30	500 300 590	1991. Jan.1	By Purchases a/c By Machinery a/c By Rent a/c By Salaries a/c	30 30 30 30	2,000 1,000 50 100

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1991. Jan.1	To Sales a/c	30	500	1991. Jan.10	By Cash a/c	30	500

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
				1991. Jan.3	By Karim By Cash a/c By Rahim & Sons	30 30 30	500 300 600

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1991. Jan.15	To Cash Account	30	1,000

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1991. Jan.25	To Sales a/c	30	600	1991. Jan.28	By Cash a/c By Discount a/c		590 10

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1991. Jan.28	To Rahim & Sons	30	10

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1991. Jan.30	To Cash a/c	30	50

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1991. Jan.31	To Cash a/c	30	2,000