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GENERAL LEDGER

 4 ledger accounts are prepared (1) cash (2) capital (3) furniture (4) accounts payable.

Left hand side of an account is debit and right side is credit.
In the first entry, cash is debited so Rs.200,000 is posted on the left hand side of cash account and capital is credited so Rs.200,000 is posted on the right hand side of capital account.
In the second entry, furniture is debited so posted on the left hand side of furniture account and accounts payable is credited so posted on right hand side of accounts payable account.
In the third entry, accounts payable is debited so posted on the left hand side of payable account and cash is credited and posted on the right side of cash account.
This step is known as posting means transferring data from journal to ledger (it is written in WHITE colour font).
After posting, accounts totalled are required which side has a high total. cash account is debited with 200,000 and credited with 10,000 so debited side is more than credit side. debit total is recorded on both side (debit and credit side). similarly capital has only credit posting so credit amount is posted on both sides. this step is known as footing (blue colour font).
difference between debit and credit is recorded on the deficit side of account like cash accounts has a low balance on credit side 190,000. this balance is called c/d balance. and transferred this balance to the next period on the other side i.e debit side known as b/d balance. this step is known as balancing (green colour font).



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