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)