XYZ Company
Journal
As on 4th January 2020
1. Cash A/c 80,000
Capital A/c 80,000
2. Building A/c 30,000
Cash A/c 30,000
3. Furniture A/c 10,000
Cash A/c 10,000
4. Equipment’s A/c 5000
Account payable 5000
XYZ Company
Ledger
As on 4th January 2020
Cash A/c
Dr. Cr.
Date Particulars F Amount Date Particulars F Amount
1 Capital A/c 80,000 2 Building A/c 30,000
3 Furniture A/c 10,000
4 Balance b/d 40,000
Total 80,000 80,000
Debit balance
Capital A/c
Dr. Cr.
Date Particulars LF Amount Date Particulars LF Amount
1 Cash A/c 80,000
4 Balance b/d 80,000
Total 80,000 80,000
Building A/c
Dr. Cr.
Date Particulars LF Amount Date Particulars LF Amount
2 Cash A/c 30,000
4 Balance b/d 30,000
Total 30,000 30,000
Debit balance
Furniture A/c
Dr. Cr.
Date Particulars LF Amount Date Particulars LF Amount
3 Cash A/c 10,000
4 Balance b/d 10,000
Total 10,000 10,000
Debit balance
Equipment A/c
Dr. Cr.
Date Particulars LF Amount Date Particulars LF Amount
4 Account 5000
payable
4 Balance b/d 5000
Total 5000 5000
Debit balance
Account Payable A/c
Dr. Cr.
Date Particulars LF Amount Date Particulars LF Amount
4 Equipment A/c 5000
4 Balance b/d 5000
Total 5000 5000
Credit Balance
XYZ Company
Trial Balance
As on 4th January 2020
No. Particulars Debit Credit
Types of Ledger
There are 3 types of Ledgers – King of all books/ Book of Principles
• Sales Ledger
• Purchase Ledger
• General Ledger
1. Sales Ledger – Sales Ledger is a ledger in which the company maintains the transaction of
selling the products, services or cost of goods sold to customers. This ledger gives the idea of sales
revenue and income statement.
2. Purchase Ledger – Purchase Ledger is a ledger in which the company organizes the transaction
of purchasing the services, products, or goods from other businesses. It gives the visibility of how
much amount the company paid to other businesses.
3. General Ledger – General Ledger is divided into two types – Nominal Ledger and Private
Ledger. Nominal ledger gives information on expenses, income, depreciation, insurance, etc. And
Private ledger gives private information like salaries, wages, capitals, etc. Private ledger is not
accessible to everyone.
Record the following transactions in the Journal and post them into
ledger and prepare a Trail Balance
Oct 1st : Neel started business with a capital of 80,000
3rd : Bought goods from Karl on credit 20,000
4th : Sold goods to Tarl 25,000 on account
5th : Cash purchases of goods 25,000
7th : Cash sales 15,000
9th : Goods retuned to Karl 2,000
10th : Bought furniture for 15,000
