The principal book of accounts is the:

Ledger. The ledger is the principal book.

In a ledger account, the word 'To' is used on the:

Debit side. 'To' is used on the debit side and 'By' on the credit side.

Balance carried to the next period is written as:

Balance c/d. c/d means carried down.

A debit balance in a personal account of a customer shows:

Amount receivable from him. He owes money to the business.

Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 Book Keeping and Accountancy Chapter 4: Ledger

Short notes, key concepts, quick revision and practice MCQs with answers

The Ledger is the principal book of accounts in which all journal entries are posted account-wise. Balancing the ledger accounts shows the net position of each account.

Key concepts: Ledger

Ledger: Book containing all accounts; also called the principal book or book of final entry.
Posting: Transferring entries from journal or subsidiary books to the relevant ledger accounts.
Balancing: Finding the difference between the two sides of an account and carrying it forward.
Format: T-shaped account with Dr side (left) and Cr side (right), each with date, particulars, J.F. and amount.
Rules of posting: Use 'To' on the debit side and 'By' on the credit side; the other account is named in particulars.
Journal vs ledger: Journal is chronological; ledger is classified by account.
Posting GST entries: Input CGST, Input SGST (and Input IGST) and Output CGST, Output SGST accounts are opened in the ledger and posted like any other account. In a combined entry each account is posted separately.

Quick revision: important points

Debit balance = debtors, assets, expenses; credit balance = creditors, liabilities, incomes.
J.F. means Journal Folio.
Balance carried down (c/d) and brought down (b/d).
Input tax accounts normally show a debit balance; Output tax accounts a credit balance.

Practice MCQs with answers

The principal book of accounts is the:
1. Ledger
2. Journal
3. Diary
4. Voucher
Show answer
Answer: A. Ledger
The ledger is the principal book.
Transferring entries to the ledger is called:
1. Posting
2. Journalising
3. Narration
4. Rectification
Show answer
Answer: A. Posting
Posting.
In a ledger account, the word 'To' is used on the:
1. Debit side
2. Credit side
3. Both sides
4. Neither side
Show answer
Answer: A. Debit side
'To' is used on the debit side and 'By' on the credit side.
Balance carried to the next period is written as:
1. Balance c/d
2. Total
3. Narration
4. Folio
Show answer
Answer: A. Balance c/d
c/d means carried down.
A debit balance in a personal account of a customer shows:
1. Amount receivable from him
2. Amount payable to him
3. Nothing
4. Profit
Show answer
Answer: A. Amount receivable from him
He owes money to the business.

All Class 11 Book Keeping and Accountancy chapters

Class 11 Book Keeping and Accountancy notes: all chapters