Class notes

Prepare a Bank Reconciliation Statement as on 31-12-2000:  1) Bank balance as per Pass Book Rs. 30,000 2) Bank has paid life insurance premium Rs. 500  3) Bank has collected interest on Bank Deposit Rs. 250 4) Bank has debited for Bank charges Rs. 150/ 5) Customer has directly deposited into own Bank A/c Rs. 1,000 6) Cheque deposited Rs. 2,000/-, cleared Rs. 1,500 7) Cheque issued worth Rs. 800, Preserved Rs. 300 8) Bank has paid water bill Rs. 150 9) There was excess debit in Pass Book Rs. 200 10) Bank has collected dividend on shares Rs. 1,000.

Ledger Introduction : The journal alone will not serve all the purposes of accounting. In the journal the entries of the transactions are spread over an different dates. Therefore the other book, namely, the ledger comes into play where all the entries pertaining to different accounts are summarised and classified under the respect accounts. This makes it possible to know the position of each and every account maintained in the ledger on any given date.  Meaning of Ledger : "Ledger is usually a bound book containing the various accounts concerned with the business. It contains all the personal accounts of debtors and creditors with whom the business deals, the accounts of all the assets of the business and also the accounts of various expenses incurred and the incomes earned by the business". Principal book or Chief book A ledger is the "Principal book" or "Chief book" of accounts for a trader's business. It contains all his transactions and accounts...

Meaning of Journal: The term 'journal' is derived from the French word 'jour', which means a day. Journal, therefore, means a daybook or a daily record. It is a book of original entries in which all transactions are first recorded chronologically (i.e., in the order of occurrence or order of dates) from the source documents.  In the journal, each transaction is analysed (i.e., classified) into debit (i.e., receiving or incoming) aspect and credit (i.e., giving or outgoing) aspect, and both the debit and credit aspects of each transaction are recorded together in one entry, with a brief explanation for the entry called narration. Features of Journal The following are some of the features of the journal:  (a) Journal is written every day (b) Transactions are recorded systematically in chronological order date wise (c) It is a book of prime or original entry (i.e. first entry)  (d) It analysis the transactions into the accounts to be debited and credited. (e) It contains t...