DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : NAND KISHORE SINGH

Designation : Lecturer
Branch : D.C.C.P.
Institute : S.G.M. Government Polytechnic,
Abdullapurmet,R.R.Dist
Year/Semester : I Year
Subject : ACCOUNTANCY-I
Subject Code : CCP-102
Topic : Ledger
Duration : 50 Minutes
Sub-Topic : Introduction to Ledger
Teaching Aids : PPT and Animations

CCP102.23 1
Objectives

On completion of this period, you would

be able to :

 Understand the Rules of posting into a Ledger

account
 Understand the meaning of Balancing a Ledger
Account
 Understand the procedure of Balancing with the
help of an illustration

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Structure

 Meaning of Balancing
 Procedure of Balancing
 Illustration
 Summary and Quiz

CCP102.23 3
Recap

 We know that Ledger is a book of accounts

 We know how to post into a Ledger Account

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Let us now see:

 Meaning and procedure of Balancing of a

Ledger Account

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 Balancing of a ledger account

 The next stage after posting is Balancing

 Generally both sides of an account may not be equal
 If Debit side total is more – Debit Balance
 If Credit side total is more – Credit Balance
 The process of showing debit or credit balance of an
account is called Balancing

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 Balancing procedure
 Add up both sides of an account on rough paper
 Find the difference of both sides
 This is the balancing figure
 Enter the balancing figure on the side with smaller total

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Balancing procedure continued

 If the debit side is smaller write ‘To Balance c/d’

 If the credit side is smaller write ‘By balance c/d
 c/d stands for ‘Carried down’

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Balancing procedure continued

 Now write the greater total on each side in the

account
 Both totals should be same
 Both totals should be in the same line
 Single line must be drawn on the top of the total
 Double line on the bottom of the total

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Balancing procedure continued

 Enter the balancing figure just above the total

 This is called ‘Closing balance’
 Bring the closing balance to the opposite side
 Enter this below the total
 This is the opening balance for the next month
 Show this as ‘Balance b/d’
 c/d stands for brought down

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 Let us understand the balancing procedure
better with the help of an illustration

CCP102.23 11
Post the following transactions into
Krishna’s account and balance

 Jan1st Sold goods to Krishna Rs.2,000

 Jan 5th Purchased goods from Krishna Rs.2,800
 10th Paid cash to Krishna Rs.2,400
 15th Sold goods to Krishna Rs.800
 25th Received cash from Krishna Rs.4,800

CCP102.23 12
 Krishna’s Account
Dr Cr
Date Particulars J Amount D Particulars J Amount
F ate F

2005 To sales a/c 2,000 2005

By Purchases a/c 2,800
To cash a/c 2,400 Jan 5
Jan 1
To Sales a/c 800 By Cash a/c 4,800
2 To Balance c/d 2,400
15
----------- 25 ----------
7,600
----------- 7,600
----------
31 ----------- ----------
2,400
By Balance b/d

Feb 1st

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In the above illustration

 After posting all the entries delete total both

sides
 Debit side total is lesser
 Rs.2,400 is the balancing figure
 It is posted on the debit side as the total is
less
 Hence it is called debit balance
 The balance is brought down to Feb 1st on
credit side below total

CCP102.23 14
Summary

 We have seen how to post into ledger account

 How to find out the balancing figure
 How to bring down the balance to the next month

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Quiz

1.We put same totals on both sides of an

account-True or False:
b. True
c. False
d. none

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Quiz

2. If the credit side of the account shows lesser total it is

called:
b. Credit balance
c. Debit balance
d. Both

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Frequently asked questions
1. What is balancing
2. Mention the procedure to be followed while balancing an
account

CCP102.23 18
Assignment

Post the following transactions into Rama’s

account and balance:
2006 July 1st Purchased goods from Rama
Rs.5,000
4th Sold goods to Rama Rs.4,900
12th Paid cash to Rama Rs.4,500
15th Received cash from Rama Rs. 3,500
20th Goods returned to him Rs. 500
25th Purchased furniture for cash Rs.600

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THANK YOU

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