UNIT-5 Financial Accounting PDF

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https://online.jainuniversity.ac.in  JAIN DEEMED-TO-BE UNIVERSITY ONLINE Teaching-Learning-Evaluation-Plan Week 5 Ledger Posting Quadrant 1 2. Watch the eLearning content on “L5: Ledger Posting” eContent 3. Read the eLM on “Unit 5: Ledger Posting” Quadrant 2 1. Revise “L4: Ledger Entries” recording of the live Session e-Tutorial 5. Attend the live session #5 on “ Ledger Posting ” 4. Take the formative assessment for “L5: Ledger Posting” Quadrant 3 6. After the live session, repeat the formative assessment for “L5: Ledger Posting” for self-assessment e-Assessment 7. Attempt solving the Problems for Practice #5 on “Ledger Posting” 10. Attempt Continuous Internal Assessment 1 Quadrant 4 8. Participate in collaborative learning by discussing the Problems for Practice #5 Discussions 9. Watch the lecture https://www.youtube.com/watch?v=8HWrCIFb4Q0  JAIN DEEMED-TO-BE UNIVERSITY ONLINE Financial Accounting-I UNIT–5 Ledger Posting  JAIN DEEMED-TO-BE UNIVERSITY ONLINE Purpose of Ledger The ledger is like a detailed record book where we keep track of all transactions related to different accounts, such as cash, sales, or purchases.  JAIN DEEMED-TO-BE UNIVERSITY ONLINE Ledger Posting Process After we write down transactions in a general journal, we organize and record them in the right account pages in the ledger. Money going in (debits) is noted on the left side, and money going out (credits) is noted on the right side. Using "To" and "By": We use "To" when we write down things we paid or bought (debits), and "By" when we note money we received or sold (credits). These words help us remember whether we are adding or subtracting from an account. Ledger Posting Process If we debit an account in the journal, we should debit the same account in the ledger. We also make a note of the corresponding credit account for reference.  JAIN DEEMED-TO-BE UNIVERSITY ONLINE Balancing of Ledger: Purpose At the end of the year, we want to see if our accounts are in balance. Balancing helps us check if we've recorded everything correctly. Steps for Balancing Ledger Account: Add up the left (debit) and right (credit) sides of an account separately 1. to avoid mistakes. Find the difference by subtracting the smaller total from the larger one. 2. This is called the "Balance amount."  JAIN DEEMED-TO-BE UNIVERSITY ONLINE Debit or Credit Balance If the left (debit) side total is bigger, it's a "Debit Balance." We write it on the right (credit) side with "By Balance c/d" or "By Balance c/FD" (c/d means carried down, c/FD means carried forward). If the right (credit) side total is bigger, it's a "Credit Balance." We write it on the left (debit) side with "To balance c/d" or "To balance c/fd" (c/d means carried down, c/fd means carried forward). Closing and Balancing: Write the balance amount in both the debit and credit columns. Draw double lines below to show the account is closed and balanced. Opening Balance Next Year The balance from the end of the previous year becomes the starting balance 1. for the new year. If it's a debit balance, note it as "To Balance b/d" or "To Balance b/fd" on the 2. debit side (b/d means brought down, b/fd means brought forward). Note About Nominal Accounts: For accounts related to income and expenses, we don't balance them like this. Instead, we transfer their balances to the profit and loss account to figure out our profit or loss for the period.  JAIN DEEMED-TO-BE UNIVERSITY ONLINE Teaching-Learning-Evaluation-Plan Week 6 Trial balance Quadrant 1 2. Watch the eLearning content on “L6: Trial balance” eContent 3. Read the eLM on “Unit 6: Trial balance ” Quadrant 2 1. Revise “L5: Ledger Posting” recording of the live Session e-Tutorial 5. Attend the live session #6 on “ Trial balance ” Quadrant 3 4. Take the formative assessment for “L6: Trial balance” e-Assessment 6. After the live session, repeat the formative assessment for “L6: Trial balance” for self-assessment 7. Attempt solving the Problems for Practice #6 on “ Trial balance ” Quadrant 4 8. Participate in collaborative learning by discussing the Problems for Practice #6 Discussions 9. Watch the lecture by https://www.youtube.com/watch?v=3_PfoTzSCQE  T H A N K Y O U https://online.jainuniversity.ac.in