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Ledger Entry: Problem no. 4

Ledger entry 4

Ledger Entry: Problem no. 4











As we are preparing Building account, we will only post entries which are related to buildings only.

1.st transaction: Purchase of building 125000 we pass journal as follows:
Building A/c.........Dr   125000
                     To Cash A/c                         125000

In Ledger we are preparing Building account and under building account we have posted "To Cash"
Post "To Cash" Debit side of Ledger Account of Building.


2nd transaction: Purchase of building material 75000 we pass journal as follows:
Building Material A/c.........Dr   75000
                     To Cash A/c                         75000

Building Expenses are related to building and we are paying cash, therefore post "To Cash"
Debit side of Ledger Account of Building.

3rd transaction: Purchase building 100000 we pass journal as follows:
Building A/c.........Dr   100000
                     To Suchir A/c                         125000

In Ledger we are preparing Building account and under building account we have to post "To Suchir"
Debit side of Ledger Account of Building.


4th transaction: Paid Depreciation on building 30000 we pass journal as follows:
Depreciation A/c.........Dr   30000
                     To Building A/c                         30000

In Ledger we are preparing Building account and under building account we have to post "By Depreciation "
Debit side of Ledger Account of Building..

Now Balance both side: Debit Showing 300000
                                       Credit Showing: 30000
Debit - Credit is 270000 Balance carried down is 270000. (On last day of the month)

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