This GSEB Class 11 Commerce Accounts Notes Part 1 Chapter 9 Ledger Posting covers all the important topics and concepts as mentioned in the chapter.
Ledger Posting Class 11 GSEB Notes
Initially business transactions are recorded in journal book or in subsidiary books. The main aim of writing the books of accounts is to get the necessary information quickly and easily. If only journal book or subsidiary books is prepared, we are able to get necessary information but it takes tremendous time and it is also difficult task, therefore there is a need of a book from which account wise information is quickly available. This book is nothing but a ledger in which accounts related to individuals, goods, assets, incomes and expenses are opened.
In this book separate accounts are opened so that information regarding the particular account is available easily from the one place only. Businessmen, depending upon the size of business, keep the ledger like
- Debtors ledger or Sales ledger,
- Creditors ledger or Purchase ledger and
- General ledger.
These types of the ledger are classified according to alphabatical order or according to area, i.e., on geographical area basis.
→ A systematic summary showing the debit and credit effects of the transactions taking place during a specific period relating to a specific person, asset, income or expense is known as Account.
→ From the recorded transactions in the journal or in the subsidiary books, the process of recording the debit or credit effect of the transactions in the relevant accounts is known as Posting.
→ Balance means the difference between the totals of debit side and credit side of an account.
- If any account, when the total of the amount on debit side exceeds the total of the amount on credit side, the balance obtained as a difference is known as a Debit balance.
- If any account, when the total of the amount on credit side exceeds the total of the amount on debit side, the balance obtained as a difference is known as a Credit balance.
- While making the totals in any account, if the totals of both the sides are same or equal and there is no difference of amount then the account is said as Squared up or Settled account.
→ Separate accounts are prepared for the specific information (or summary) from the accounting entries. The different types of accounts are prepared in a separate book, which is known as a Ledger book.
→ The main object of the ledger is to show, the position of each account in the business.
→ Ledger is a main book or a principal book of accounts. Ledger is also considered as a King of Books.
→ Three types of ledgers are popular:
- Bound book ledger
- Loose leaves ledger and
- Card ledger.
→ When more than one ledgers are maintained in the business, by classifying all accounts of a ledger, it is known as Division of ledger or Classification of ledger. It is also called subdivision of ledger or Subsidiary ledger.
→ In the beginning of ledger, a list of all accounts is maintained, which is known as an Index or Exponent of a ledger.
→ Ledger of individuals is divided into two types:
- Creditors ledger (Purchase ledger) and
- Debtors ledger (Sales ledger).
→ Two types of ledgers are generally adopted by most of the traders :
- Ledger of individuals and
- General ledger.