Posting To Ledger T Accounts
The Steps in Posting are usually applied when we manually transfer the Transactions to concerned Ledger’s T Accounts.
Here is an example of posting transactions to Concerned Ledger’s T Accounts of a Sole Trader Or Sole Proprietor, Mr. A’s business.
Business transactions are provided of Mr. A, A Sole Trader’s Business below. We firstly Journalizing these transactions and then post these to concerned ledger’s accounts.
Suppose, On Jan. 1 Mr. A started business with Cash Rs. 100000, Goods worth Rs. 30000 and Furniture Rs. 15000. On Jan. 2. He purchased goods worth Rs. 40000 for Cash and Rs. 10000 on
Credit From Mr. b. On Jan. 3. He sold goods worth Rs. 10000 for Cash and Rs. 5000 On Credit / On Account to Mr. C. On 4th June, he received Cash Rs. 5000 from Mr. C against credit sales.
Mr. A, Sole Trader
Journal
For The Month Of January, 2019
Date Particulars L.F. Amount Amount
Jan. 1 Rs. Rs.
2019 Cash a/c 6 100000
Purchases a/c 12 30000
Furniture a/c 8 15000
Capital a/c 10 1045000
(Cash, Goods And Furniture
Invested Into Business By Owner)
Invested Into Business By Owner)
Jan. 2 Purchases a/c 12 4000
Cash a/c 6 4000
(Goods Purchased For Cash)
Jan. 2 Purchases a/c 12 10000
Mr. B 13 10000
(Goods Purchased On Credit
From Mr. B)
Jan. 3 Cash a/c 6 10000
Sales a/c 14 10000
(Goods Sold For Cash)
Jan. 3 Mr. C 15 5000
Sales a/c 14 5000
(Goods Sold On Credit
To Mr. C)
Jan. 4 Cash a/c 6 5000
Mr. C 15 5000
(Cash Received From Mr. C)
Mr. A Sole Trader
Ledgers Accounts
For The Month, January, 2019
Cash Account (No. 6)
Date References J.R. Amount Date References J.R Amount
2019 Rs. Rs.
Jan.1 Capital a/c 1 100000 Jan. 2 Purchases a/c 1 40000
Jan. 3 Sales a/c 1 10000
Jan. 4 Mr. C 1 5000 Jan. 4 Balance c/d 1 75000
________ ________
115000 11500
________ ________
________ ________
Furniture Account (No. 8)
Date References J.R. Amount Date References J.R Amount
2019 Rs. Rs.
Jan.1 Capital a/c 1 15000 Jan. 4 Balance c/d 1 15000
________ ________
15000 15000
________ ________
________ ________
Purchases Account (No. 12)
Date References J.R. Amount Date References J.R Amount
2019 Rs. Rs.
Jan.1 Capital a/c 1 30000 Jan. 4 Balance c/d 1 80000
Jan. 2 Cash a/c 1 40000
Jan. 2 Mr. C 1 10000
________ _______
80000 80000
________ _______
________ _______
Capital Account (No. 10)
Date References J.R. Amount Date References J.R Amount
2019 Rs. Rs.
Jan.4 Balance c/d 1 1045000 Jan. 1 Cash a/c 1 80000
Jan. 1 Furniture a/c 1 15000
Jan. 1 Purchases a/c 1 30000
_________ _________
1045000 1045000
_________ _________
_________ _________
Mr. B (No. 13)
Date References J.R. Amount Date References J.R Amount
2019 Rs. Rs.
Jan.4 Balance c/d 1 80000 Jan. 1 Purchases a/c 1 80000
________ ________
80000 80000
________ ________
________ ________
Sales Account (No. 14)
Date References J.R. Amount Date References J.R Amount
2019 Rs. Rs.
Jan.4 Balance c/d 1 15000 Jan. 3 Cash a/c 1 10000
Jan. 3 Mr. C 1 5000
_______ _______
15000 15000
_______ _______
_______ _______
Mr. C (No. 15)
Date References J.R. Amount Date References J.R Amount
2019 Rs. Rs.
Jan.3 Sales a/c 1 5000 Jan. 4 Cash a/c 1 5000
_______ ________
5000 5000
________ ________
________ ________
From the T-Accounts, Assets are Cash Account, Furniture and Mr. C. Cash Account has ending balance of Rs. 75000, Furniture has
a debit balance of Rs. 15000 while Mr. C as an Accounts Receivable or a Debtor has zero balance as the customer paid its bill for the goods sold to him. Capital is a Personal Account of Owner, Mr. A which has Rs. 1045000 as a
balance carried forward. Liability is Mr. b (Accounts Payable) has credit balance of Rs. 8000. Sales account as a revenue has a credit balance of Rs. 15000 which is a Temporary Account and finally closed to income summary account.
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