Comprehensive Illustration on Ledger Entries

Illustration

Post the following transactions into the ledger and balance the various accounts at the end of the month

June 1:        Started business with ₦5,500 in cash
June 3:        Purchased goods worth ₦1,500 in cash
June 8:        Cash sales ₦700
June 12:      Paid rent by cash ₦80
June 19:      Sold goods worth ₦195 on credit to Bimbo
June 24:      Bought a motor vehicle from U7C by cash ₦1,250
June 27:      Received commission by cash ₦450

Solution

Bal. c/d = Balance carried down: Balance carried down in accounting refers to the amount remaining in an account at the end of a specific period, which is then carried forward to the next accounting period. It represents the closing balance or the ending balance of an account.

Bal. b/d = Balance brought down: Balance brought down is the opening balance of a ledger account that is brought into the books from a previous accounting period.