General Ledger Examples
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Standard Ledger Example
Sardar Hammad is sole owner of business. He has been started business since 1990. Following are transaction for the month of August 2016, prepare Journal Entry, General Ledgers and Trial Balance.
August 2016
Aug 3. Reinvestment in the shape of Cash $80,000 and Furniture $20,000.
Aug 5. Cash Sales $10,000 and on account Sales $12,000.
Aug 6. Bought goods from Ahmed Co. $60,000 paid $15,000 cash and remaining Note payable pay within 30 days.
Aug 9. Purchase Office Equipment from Waseem Shah worth Rupees $99,000, a cash down payment of $19,000 and balance will be paid by four installments, first due on 30 August.
Aug 21. Goods return by credit customer of worth $12,000.
Aug 30. Paid first installment of $20,000.
Solution: Journal Entry
Solution: Standard Ledger Accounts
Solution: Trial Balance
Sardar Hammad |
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Trial Balance |
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As on August 2016 |
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| S.N | Heads of Account | Ref | Amount ($) | |
| Debit | Credit | |||
| 1 | Cash | 36,000 | ||
| 2 | Furniture | 20,000 | ||
| 3 | Owner Equity | 100,000 | ||
| 4 | Account Receivable | -0- | ||
| 5 | Sales | 22,000 | ||
| 6 | Purchases | 60,000 | ||
| 7 | Note Payable | 45,000 | ||
| 8 | Office Equipment | 99,000 | ||
| 9 | Account Payable | 60,000 | ||
| 10 | Sales Return | 12,000 | ||
Total |
$227,000 |
$227,000 |
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>> Practice General Ledger Problems and Solutions.
Running Balance Ledger Example
Rameesha Hafeez & Co. is a boat repair yard. During August 2015, its transactions included the following. You are required to pass Journal Entry, prepare General Ledger (Running Balance) and Trial Balance.
August 2015
August 3. Loan taken from Habib Bank Ltd. of $25,000. $20,000 withdrawn for business and remaining in the bank account.
August 6. Paid rent for the month of August $4,400 and accrued rent expenses was $600.
August 12. At request of Kiwi Insurance, Inc, made repairs on boat of Jon Seaways. Sent bill for $5,620 for services rendered to Kiwi Insurance Inc. (credit Repair Service Revenue).
August 18. Made repairs to boat of Dennis Copper and collected in full the charge of $2,830.
August 20. Placed Advertisement in The Dawn at a cost of $165, payment to be made within 30 days.
August 25. Received a check for $5,620 from Kiwi Insurance Inc representing collection of the receivable of August 12.
August 30. Sent check to The Dawn in payment of the liability incurred on August 20.
Solution: Journal Entry
Solution: General Ledger Accounts
Solution: Trial Balance
Rameesha Hafeez & Co. |
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Trial Balance |
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As on August 2015 |
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| S.N | Heads of Account | Ref | Amount (Rs.) | |
| Debit | Credit | |||
| 1 | Cash | 18,430 | ||
| 2 | Bank | 10,455 | ||
| 3 | Bank Loan | 25,000 | ||
| 4 | Rent Expense | 5,000 | ||
| 5 | Rent Payable | 600 | ||
| 6 | Account Receivable | -0- | ||
| 7 | Repair Services Revenue | 8,450 | ||
| 8 | Advertising Expense | 165 | ||
| 9 | Advertising Expense Payable | -0- | ||
Total |
34,050 |
34,050 |
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Related Questions
General Ledger Questions
Related Problems
General Ledger Exam Questions
General Ledger Exercises
References
Sehgal, A., & Sehgal, D. (n.d.). Advanced Accountancy (Vol. I & II). New Delhi: Taxmann Publication Pvt. Ltd.
Shukla, M. C., Grewal, T. S., & Gupta, S. C. (2008). Advanced Accountancy (Vol. I & II). New Delhi: S Chand & Co.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2012). Accounting Principles (10th ed.). Hoboken: John Wiley & Sons, Inc.
Williams, M., & Bettner, H. (1999). Accounting (The basic for business decisions). (11th, Ed.) USA: Irwin McGraw- Hill.
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