Distinguish between journal and ledger.

What is ledger? Explain its utilities.

How is posting made from the journal to the ledger?

Explain the procedure for balancing a ledger account.

The following balances appeared in the books of Vinoth on Jan1, 2018
Assets: Cash Rs.40,000; Stock Rs.50,000; Amount due from Ram Rs.20,000; Machinery Rs.40,000 Liabilities: Amount of due to Vijay Rs.10000 Pass the opening journal entry an deposit them to Vinoth's Capital account.

Prepare cash account from the following transactions for the month of January 2018. (Direct Ledger Posting)

Jan 1	Commenced business with cash Rs. 62,000
3	Goods purchased for cash Rs. 12,000
10	Goods sold for cash Rs. 10,000
12	Wages paid Rs. 4,000
25	Furniture purchased for cash Rs. 6,000

On 15^th March 2017, Ramesh paid Rs. 13,800 in full settlement of his account Rs. 15,000 due to his creditor Dinesh. Pass journal entry and prepare ledger accounts.

In the books of Ramesh Journal entry

Date	Particulars	L.F.	Debit Rs	Credit Rs
2017
March 15	Dinesh A/c    Dr.		15,000
	To Cash A/c			13,800
	To Discount received A/c			1,200
	(Paid Dinesh in full settlement of his account)

Explain the significance of debit and credit balances of various types of accounts.

What are the steps in posting?

Explain the posting of a compound journal entry with an example.