How are ledger accounts balanced?

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Solution

To balance a general ledger, all liable balances must be deducted from all credit balances. For an account to be balanced both sides of the account must be balanced.

Also see:

MCQs on Ledger

Ledger in Accounting

What Is General Ledger?

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Give one word, term or phrase for the following statement:

1) A List of Debit Balances and Credit balances in the ledger.
2) A Statement prepared to provide the base for preparing the final accounts.
3) A statement is prepared without balancing the ledger account.
4) Mention the side where goodwill A/c is appeared in the Trial Balance.
5) A List of both Ledger balances which is prepared after the closing of ledger Accounts.

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

2017		(₹)
March 1	Shyam Sunder & Sons commenced business with cash	80,000
2	Purchased goods for cash	36,000
3	Machinery purchased for cash	4,000
4	Purchased goods from :
	Raghu	22,000
	Dilip	30,000
6	Returned goods to Raghu	4,000
8	Paid to Raghu, in full settlement of his account	17,500
10	Sold goods to Mahesh Chand & Co. for ₹ 32,000 at 5% trade discount
13	Received cash from Mahesh Chand & Co.	19,800
	Discount allowed	200
15	Paid cash to Dilip	14,850
	Discount received	150
20	Sold goods for cash	25,000
24	Sold goods for cash to Sudhir Ltd.	18,000
25	Paid for Rent	1,500
26	Received for Commission	2,000
28	Withdrew by Proprietor for his personal use	5,000
28	Purchased a fan for Proprietor's house	1,200

Write the word, term, phrase, Which can substitute each of the following statement.

1) Transfer of a Journal entry from Journal to ledger.
2) Total of Debit side of an A/c is more than total of Credit side of an A/c.
3) Page number of ledger.
4) A book of an account in which all ledger accounts are maintained.
5) Left hand side of an account.
6) Right hand side of an account.
7) Types of accounts which are not balanced but transferred to Trading A/c or Profit & Loss A/c.
8) Bound book of accounts.
9) An account where total of Purchases Book is posted.
10) A statement of accounts prepared from the balances of ledger account.

From the following Subsidiary Books prepare necessary ledger accounts and balance them.

Sales Book
Date	Particulars	Outward Invoice No.	L.F.	Amount Rs
2011 Apr.1	Amit			6,000
5	Pravin			8,000
20	Santosh			4,000
30	Mehta and Co.			12,000
	Total			30,000

Sales Return Book
Date	Particulars	Credit Note No.	L.F.	Amount Rs
2011Apr. 1	Pravin			2,000
2	Santosh			1,000
	Total			3,000

From the following Subsidiary Book Prepare necessary ledger accounts and balance them.

Purchases Book
Date	Particulars	Inward Invoice No.	L.F.	Amount Rs
2011 Aug. 2	Laxman			4,250
5	Joseph			1,500
10	Salman			3,000
15	Kamini			2,500
31	Patel			800
	Total			12,050

Purchase Return Book
Date	Particulars	Debit Note No.	L.F.	Amount Rs
2011 Aug.7	Laxman			550
18	Kamini			700
31	Patel			100
	Total			1,350

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How are ledger accounts balanced?

To balance a general ledger, all liable balances must be deducted from all credit balances. For an account to be balanced both sides of the account must be balanced. Also see: MCQs on Ledger Ledger in Accounting What Is General Ledger?

To balance a general ledger, all liable balances must be deducted from all credit balances. For an account to be balanced both sides of the account must be balanced.

Also see:

MCQs on Ledger

Ledger in Accounting

What Is General Ledger?