(credit Repair Service Revenue).Īugust 18. Sent bill for $5,620 for services rendered to Kiwi Insurance Inc. At request of Kiwi Insurance, Inc, made repairs on boat of Jon Seaways. Paid rent for the month of August $4,400 and accrued rent expenses was $600.Īugust 12. $20,000 withdrawn for business and remaining in the bank account.Īugust 6. You are required to pass Journal Entry, prepare General Ledger (Running Balance) and Trial Balance.Īugust 3. During August 2015, its transactions included the following. > Practice General Ledger Problems and Solutions. Goods return by credit customer of worth $12,000.Īug 30. Purchase Office Equipment from Waseem Shah worth Rupees $99,000, a cash down payment of $19,000 and balance will be paid by four installments, first due on 30 August.Īug 21. $60,000 paid $15,000 cash and remaining Note payable pay within 30 days.Īug 9. Reinvestment in the shape of Cash $80,000 and Furniture $20,000.Īug 5. Following are transaction for the month of August 2016, prepare Journal Entry, General Ledgers and Trial Balance.Īug 3. Because there are only movements on the credit side, there’s no need to fiddle around with it.Sardar Hammad is sole owner of business. Now let’s go ahead and complete the rest of them. That’s it! High five amigo – you’ve completed your first ledger. This leaves us with a balance on the credit side of $9,000. This is illustrated in the row that reads “MINUS DEBITS”. In this case, we subtract the $1,000 from the $10,000. Now we simply SUBTRACT THE SMALLER SIDE FROM THE LARGER SIDE to find our balance. We have a total of $1,000 on the debit side and $10,000 on the credit side. Take a look at the row that reads “TOTAL”. In this ledger, we have entries on both the debit and credit sides.įirst, we total up both sides. Ok troops, listen carefully! This gets a little tricky. Now that we’ve entered all our journals into our ledgers let’s take a look at what to do next. Now let’s look at the other side of the transaction – the Loan account.īecause the journal entry shows a credit to Loan of $10,000, we simply enter $10,000 in the credit column of the Loan ledger. By the end of the exercise, there will be over ten transactions in this ledger alone. This is because the idea of a ledger is to collect ALL transactions related to an account in one place. Notice how the previous entry, the $10,000 to Owners Equity from our earlier transaction, is in the ledger also. The journal shows a debit to the bank of $10,000, so we simply put $10,000 in the debit column of our bank ledger. Example 2īecause our journal consists of entries to the Bank and Loan accounts, we’ll need the Bank and Loan ledgers. Now let’s look at the rest of the journals from our lesson 7, and see if we can enter them correctly into our ledgers. In the Details column, we’ll write “Bank”, as this allows us to see what the other side of the transaction was.ĭone! We’ve just done our first two entries into our ledgers. To record this in the ledger, it is as simple as putting $10,000 in the credit column. The journal entry shows a credit of $10,000 to Owners Equity. By using ledgers, we can summaries hundreds or even thousands of transactions into a single balance! Obviously, that makes things a lot easier to manage. For example, instead of knowing that we spent $100 on car expenses in July, $300 in August, $600 in September, $500 in November and so on, our ledger will simply tell us we spent $1,500 in total. In bookkeeping/accounting Ledgers are important because they summarise all our transactions into a single balance. For example, our bank ledger will summaries all the transactions that involved our bank account our loan ledger will summarise all the transactions that involved our loan account and so on Ledger is a summary of transactions that relate to a certain account. The next step in the accounting process is entering these journal entries into ledgers. We’ve just processed all our transactions into journals.
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