Can we use a ledger balance?

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Solution

A ledger balance is safer to rely on as it accounts for all debits and accounts in real-time, whereas the actual available balance might not contain these debits and credits that have yet to be cleared in an account. Therefore, a business entity can follow its ledger balance.

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Similar questions

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

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 and prepare a Trial Balance:


2019		(₹)	2019		(₹)
April 1	Mohan commenced business with cash	1,00,000	April 20	Received cash from Gopal	3,950
April 3	Bought goods	5,000		Discount Allowed	50
April 4	Sold goods to Gopal	4,000	April 25	Paid wages	700
April 10	Bought goods from Ram	8,000	April 27	Paid to Ram in full settlement	7,700
April 15	Paid trade expenses	2,000	April 30	Paid rent	1,500

Q. We can use a balance to measure the lengths of two objects.

Q. Asset ledger shows _________ balance.

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