ALL IN ONE PRACTICAL ACCOUNTANCY COURSE
LEVEL-1 ACCOUNTING BASICS
CLASS#5
LEDGER TO FINAL
ACCOUNT
Email id – tallyhomeagra@[Link], mobile number for WhatsApp only - 7252033025
LEDGER (Principal Book of Account)
1. A ledger is actual account head to identify your transaction.
2. Posting the ledger is the classifying phase of accounting.
CR/
Date Particulars Debit Credit Balance DR
YOUTUBE CHANNEL - TALLY HOME & INSTITUTE
Tally Home & Institute
Cash A/C (Asset)
CR/
Date Particulars Debit Credit Balance DR
01.04.2021 Ramesh's Capital a/c 100000 - 100000 Dr
04.04.2021 Xyz a/c 40000 - 140000 Dr
05.04.2021 Bank a/c - 10000 130000 Dr
06.04.2021 Furniture a/c - 5000 125000 Dr
07.04.2021 Salary a/c - 5000 120000 Dr
08.04.2021 Ram a/c - 200 119800 Dr
09.04.2021 Rent a/c - 1000 118800 Dr
11.04.2021 Abc a/c -
YOUTUBE CHANNEL - TALLY HOME & INSTITUTE 20000 98800 Dr
Tally Home & Institute
Ramesh's Capital A/C (Liabilities)
CR/D
Date Particulars Debit Credit Balance R
01.04.2021 Cash a/c - 100000 100000 Cr
YOUTUBE CHANNEL - TALLY HOME & INSTITUTE
Tally Home & Institute
Purchase A/C (Expense)
CR/
Date Particulars Debit Credit Balance DR
02.04.2021 Abc a/c 50000 - 50000 Dr
ABC A/C (Creditor)
CR/D
Date Particulars Debit Credit Balance R
02.04.2021 Purchase a/c - 50000 50000 Cr
11.04.2021 Cash a/c 20000 - 30000 Cr
11.04.2021 Bank a/c
YOUTUBE CHANNEL - TALLY HOME & INSTITUTE
20000 - 10000 Cr
Tally Home & Institute
XYZ A/C (Debtor)
CR/
Date Particulars Debit Credit Balance DR
03.04.2021 Sale a/c 80000 - 80000 Dr
04.04.2021 Cash a/c - 40000 40000 Dr
10.04.2021 Bank a/c - 40000 -
SALE A/C (Income)
CR/D
Date Particulars Debit Credit Balance R
03.04.2021 Xyz a/c - 80000 80000 Cr
YOUTUBE CHANNEL - TALLY HOME & INSTITUTE
Tally Home & Institute
Furniture A/C (Asset)
CR/D
Date Particulars Debit Credit Balance R
06.04.2021 Cash a/c 5000 - 5000 Dr
BANK A/C (Asset)
CR/D
Date Particulars Debit Credit Balance R
05.04.2021 Cash a/c 10000 - 10000 Dr
10.04.2021 XYZ a/c 40000 - 50000 Dr
11.04.2021 ABC a/c -
YOUTUBE CHANNEL - TALLY HOME & INSTITUTE
20000 30000 Dr
Tally Home & Institute
Commission A/C (Expense)
CR/D
Date Particulars Debit Credit Balance R
08.04.2021 Ram a/c 200 - 200 Dr
Ram A/C (Creditor)
CR/D
Date Particulars Debit Credit Balance R
08.04.2021 Commission a/c - 200 200 Cr
08.04.2021 Cash 200 - 0
Rent A/C (Expense)
CR/D
Date Particulars Debit Credit Balance R
09.04.2021 Cash a/c 1000 - 1000 Dr
YOUTUBE CHANNEL - TALLY HOME & INSTITUTE
WHAT IS TRIAL BALANCE ?
Trial balance is periodical statement which is made on a particular date with the
help of the ledger to check the arithmetical errors in the account.
Characteristics of Trial Balance
[Link] Balance is not an account . It is a statement only.
[Link] the closing balances of accounts are shown in the trial balance.
[Link]’s a summary of all accounts.
[Link] shows the arithmetical mistake of the entries.
[Link], profit & loss account & the balance sheet are prepared with
the help of trial balance only.
[Link] closing balance of stock is never shown in trial balance.
TRIAL BALANCE
[Link]. Particulars Debit Credit
1 Cash a/c (Asset) 98800 -
2 Ramesh's Capital a/c (Liabilities) - 100000
3 Purchase a/c (Expense) 50000 -
4 Abc a/c (Creditor) - 10000
5 Sale a/c (Income) - 80000
6 Furniture a/c (Asset) 5000 -
7 Salary A/c 5000 -
8 Bank a/c (Asset) 30000 -
9 Commission a/c (Expense) 200 -
10 Rent a/c (Expense) 1000 -
Grand Total 190000 190000
Trading Account
The account which is prepared to determine the gross profit or gross loss of a business concern
for a given accounting period.
Example & Co.
Trading account for the year ended 31-03-2022
Particulars Debit Particulars Credit
Opening Stock ------ Sales -----
Less- Sales Return -----
Purchase ------ ------
Less- Purchase Return ------ Direct Incomes -----
---------- (Discount, Duty Drawback, etc.)
Direct Expenses ------- -----
(Wages, Freight, Custom Duty etc.) Closing Stock
Gross Profit ( Transferred to P&L a/c) ------- Gross loss ( Transferred to P&L a/c)
IF CREDIT SIDE EXCEEDS THE DEBIT SIDE = GROSS PROFIT
IF DEBIT SIDE EXCEEDS THE CREDIT SIDE = GROSS LOSS
Profit & Loss Account
The account which is prepared to determine the net profit or net loss of the business for a given accounting period.
Example & Co.
Profit & Loss account for the year ended 31-03-2022
Particulars Debit Particulars Credit
Gross Loss B/F Gross Profit B/F
Office and Administration Expenses: Indirect Incomes :
Salaries, Rent, Electric Charges, Printing & Stationery Etc. Interest, Rent, Discount received Etc.
Selling and Distribution Expenses:
Freight Outward, Advertisement, Commission, Travelling
Exp, Packing Exp Etc.
Financial and Other Expenses:
Depreciation, Repair, Audit Fee, Bank Charges, Legal
Charges, Etc. Net loss - transferred to capital A/C
Net profit - transferred to capital A/C
IF CREDIT SIDE EXCEEDS THE DEBIT SIDE = NET PROFIT
IF DEBIT SIDE EXCEEDS THE CREDIT SIDE = NET LOSS
Balance Sheet
A balance sheet is prepared to show the financial position of a business concern, balance sheet
shows the various types of assets & liabilities.
Balance Sheet As at 31-03-2022
Liabilities Amount Assets Amount
Capital: Fixed Assets:
Opening Balance Building
Add: Net Profit Vehicle
Air Conditioner
Liabilities ( Loans) : Land
Bank OD A/C Mobile
Secured Loans Computer
Unsecured Loans, Etc…… Etc…..
Current Liabilities: Current Assets:
Duties & Taxes Closing Stock
Sundry Creditors Bank Accounts
Bill Payable, Etc…. Cash in Hand
Etc……
Note: for the balance sheet reflect the true picture , both heads (Liabilities
& assets) should tally (Assets= Liabilities+ Equity)
Simple Rules for Preparing Final Accounts
Income has always Credit Balance in Trial Balance
Income Trading & Profit & loss A/C Credit Side
Expenses Expense has always Dedit Balance in Trial Balance
Trading & Profit & loss A/C Debit Side
Assets Assets have always Debit Balance in Trial Balance
Balance Sheet ( Right Hand Side)
Liabilities have always Credit Balance in Trial Balance
LIABILITIES
Balance Sheet (Left Hand Side)
TRIAL BALANCE
[Link]. Particulars Debit Credit
1 Cash a/c (Asset) 98800 -
2 Ramesh's Capital a/c (Liabilities) - 100000
3 Purchase a/c (Expense) 50000 -
4 Abc a/c (Creditor) - 10000
5 Sale a/c (Income) - 80000
6 Furniture a/c (Asset) 5000 -
7 Salary A/c (Expenses) 5000 -
8 Bank a/c (Asset) 30000 -
9 Commission a/c (Expense) 200 -
10 Rent a/c (Expense) 1000 -
Grand Total 190000 190000
Example & Co.
Trading & Profit & Loss account for the year ended 31-03-2022
Particulars Debit Particulars Credit
Purchase 50000 Sales 80000
Gross Profit C/F 30000
80000 80000
Gross Profit B/F 30000
Commission 200
Rent 1000
Salary 5000
Net Profit Transferred to Capital A/C 23800
Total 30000 Total 30000
Example & Co.
Balance Sheet As at 31-03-2022
Liabilities Amount Assets Amount
Capital Account : Fixed Assets:
Ramesh’s Capital 100000 123800 Furniture 5000
Add: Net Profit 23800
Current Assets:
Current Liabilities: Cash In Hand 98800
Abc 10000 Bank 30000
Total 133800 Total 133800
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Email id – tallyhomeagra@[Link], mobile number for WhatsApp only - 7252033025
