Ledger Posting | Answers
Identify Debit or Credit
State whether the account is debited or credited:
Bought office supplies for cash
Office Supplies ➧ Debit
Cash ➧ Credit
Owner invested capital
Cash ➧ Debit
Capital ➧ Credit
Paid rent
Rent Expense ➧ Debit
Cash ➧ Credit
Sold goods for cash
Cash ➧ Debit
Sales Revenue ➧ Credit
Business took a loan
Cash ➧ Debit
Loan Payable ➧ Credit
Post to Ledger | T-Accounts
Cash
Dr 500
Dr 500
Sales Revenue
Cr 500
Cr 500
Cash Account
Debit
500
500
Credit
Sales Revenue Account
Debit
Credit
500
500
Rent Expense
Dr 200
Dr 200
Cash
Cr 200
Cr 200
Rent Expense
Debit
200
200
Credit
Cash
Debit
Credit
200
200
Equipment
Dr 1,000
Dr 1,000
Accounts Payable
Cr 1,000
Cr 1,000
Equipment
Debit
1,000
1,000
Credit
Accounts Payable
Debit
Credit
1,000
1,000
Balance the T-Account
Cash Account
Debit
1,000
+ 500
+ 400
= 1,900
1,000
+ 500
+ 400
= 1,900
Credit
300
+ 200
= 500
300
+ 200
= 500
Balance
Debit - Credit | 1,900 - 500 = 1,400
Final Answer:
Closing Balance | Balance c/d: 1,400 (debit)
Balance b/d (next period): 1,400 (debit)
Folio Linking Practice
There is no “correct” universal match, but a logical matching is
J1 ➧ L1
J2 ➧ L2
J3 ➧ L3
Any consistent pairing is acceptable - purpose is understanding how references work.
Mini Case Study
A small tech shop recorded these transactions in the journal
Owner invested $4,000 cash.
Cash
Dr 4,000
Dr 4,000
Capital
Cr 4,000
Cr 4,000
Bought a printer for $300 on credit.
Equipment
Dr 300
Dr 300
Account Payable
Cr 300
Cr 300
Paid $150 for electricity.
Electricity Expense
Dr 150
Dr 150
Cash
Cr 150
Cr 150
Received $500 from a customer.
Cash
Dr 500
Dr 500
Sales Revenue
Cr 500
Cr 500
Returned defective goods worth $100 to supplier.
Accounts Payable
Dr 100
Dr 100
Purchase Returns
Cr 100
Cr 100
Post them to ledger accounts (Cash, Capital, Accounts Payable, Equipment, Electricity Expense, Sales Revenue, Purchase Returns).
Cash
Debit
4,000
500
4,000
500
Credit
150
150
Balance c/d = 4,350
Capital
Debit
Credit
4,000
4,000
Equipment
Debit
300
300
Credit
Accounts Payable
Debit
100
100
Credit
300
300
Electricity Expense
Debit
150
150
Credit
Sales Revenue
Debit
Credit
500
500
Purchase Returns
Debit
Credit
100
100
Balance the Cash Account after all postings.
Debits:
4,000 + 500 = 4,500
Credits:
150
Balance:
4,500 - 150 = 4,350 debit
Final Cash Balance = 4,350 (debit)
Quick Quiz
What is a ledger?
➛ The book that contains all individual accounts.
What is posting?
➛ Transferring entries from the journal to the ledger.
On which side of the ledger do debits appear?
➛ The left side.
Balancing means making the debit equal to the credit.
➛ False | Balancing finds the difference between debit and credit.
What is the purpose of account folios?
➛ To cross-reference journal and ledger entries for easy tracking.
Trial Balance ➧ Here