LEDGER AND TRIAL BALANCE

Example 2 : Compound Journal Entry. Received ` 14,500 in full settlement of a debt of ` 15,000 from Ram on Aug 8, 2011.

SULUTION - Journal Entry

Ledger A/c

Cash A/c

Case II. - LEDGER POSTINGS FROM CASH BOOK

Important Points :

1. Cash Book itself serves as a cash A/c also, therefore when cash book is maintained, cash A/c is not opened in the ledger.
2. When Bank column is maintained in the Cash Book, Bank A/c is also not opened in the ledger. The Bank column itself serves the purpose of Bank A/c.
3. Opening and closing balances of Cash Book will not be entered in the ledger anywhere.
4. As Cash Book serves the purpose of Cash/Bank A/c, it means that, only the second A/c (other than Cash A/c or Bank A/c) is to be opened in the ledger and posting is to be made for each entry in the Cash Book.

Rules of Posting

class="bodytext"(a) Posting from the Debit Side of Cash Book

Entries appearing on the debit side of Cash Book are to be posted to the Credit Side of respective accounts in the Ledger by writing the words

'By Cash A/c' → if it is from the Cash Column
By Bank A/c → if it is from the Bank column.

(b) Posting from the Credit Side of Cash Book

Entries appearing on the credit side of the Cash Book are to be posted to the Debit side of respective accounts in the ledger by writing the words.

'To Cash A/c' → if it is from the Cash Column
'By Bank A/c' → if it is from the Bank Column

(c) All contra entries marked 'C' are ignored while posting from the Cash

Book to the Ledger because double aspect of such transactions is completed in the Cash Book itself.
Example : Given some Cash Book entries post there into ledger A/c

SOLUTION :

• 15^th Jan. entry will not be posted (Contra Entry)
• Closing Balance will not be posted in the ledger

CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari ) 
Email Id : [email protected]