Ledger ICSE Class 9 Commercial Studies: Posting and Balancing Ledger Accounts

What Ledger is about

Weightage: CISCE publishes no chapter weightage and no question-paper layout for ICSE Class 9 Commercial Studies. Class IX is examined by your school: one 80-mark paper of 2 hours plus 20 marks of internal assessment. Ledger is topic 4. Introduction to Accounting and Bookkeeping (e) of the 2028 syllabus.Source: CISCE ICSE 2028 Commercial Studies syllabus, Class IX

Key concepts

Meaning and importance of the ledger

The ledger is the book that contains all the accounts of a business, in which the transactions recorded in the journal are classified and grouped account by account. It is called the principal book (or main book) of accounts because the final accounts are prepared from it.

Importance:
1. Shows the net position of each account: how much cash is in hand, how much each debtor owes, how much is owed to each creditor.
2. Classifies transactions: all transactions of one kind (all rent, all sales) are together.
3. Gives the balances from which the trial balance and final accounts are prepared.
4. Helps managers and owners find information quickly.

Journal versus ledger: the journal is the book of original entry (chronological record); the ledger is the book of final entry (analytical, account-wise record). Recording in the journal is journalising; recording in the ledger is posting.

Worked example

(2 marks) Distinguish between the journal and the ledger on two points.

Try it first, then show the solutionSolution

1. Nature: the journal is the book of original entry; the ledger is the principal book (book of final entry) - 1 mark.
2. Arrangement: the journal records transactions in date order; the ledger records them account by account (classified) - 1 mark.

Answer: The journal is the book of original entry, recording transactions in date order; the ledger is the principal book, classifying them into separate accounts so the balance of each can be found.

Format of a ledger account

Each account is in the shape of the letter T (a 'T-account'), with a debit side on the left and a credit side on the right.

[Name] Account

Dr Date	Particulars	J.F.	Amount (₹)	Cr Date	Particulars	J.F.	Amount (₹)
	To (account credited in the journal)				By (account debited in the journal)

Columns: Date of the transaction; Particulars (the other account of the entry, with 'To' on the debit side and 'By' on the credit side); J.F. (journal folio: the page of the journal from which the entry comes); Amount.

The account title is written at the top centre (e.g. 'Cash Account'), with 'Dr' at the top left and 'Cr' at the top right.

Worked example

(2 marks) Name the columns on each side of a ledger account and explain J.F.

Try it first, then show the solutionSolution

1. Each side has Date, Particulars, J.F. and Amount columns - 1 mark.
2. J.F. (journal folio) is the page number of the journal where the entry was recorded, used for cross-reference - 1 mark.

Answer: Each side has Date, Particulars, J.F. and Amount. J.F. means journal folio: the journal page number of the entry, so that the posting can be traced back.

Posting: the To and By rule

Posting means transferring each journal entry to the two ledger accounts concerned.

Rules:
1. In the account debited in the journal: make the entry on its debit side, write 'To' followed by the name of the account credited, and the amount.
2. In the account credited in the journal: make the entry on its credit side, write 'By' followed by the name of the account debited, and the amount.
3. Write the date and J.F.; write the ledger page in the L.F. column of the journal.

Example: Journal entry 'Rent A/c Dr ₹6,000; To Cash A/c ₹6,000' on 25 April.
In Rent A/c (debit side): 'Apr 25 | To Cash A/c | 6,000'.
In Cash A/c (credit side): 'Apr 25 | By Rent A/c | 6,000'.

Tip: each account shows the OTHER account of the entry, not itself.

Worked example

(2 marks) Post the entry 'Purchases A/c Dr ₹25,000; To Mohan A/c ₹25,000' (6 April) to the ledger.

Try it first, then show the solutionSolution

1. Purchases A/c, debit side: Apr 6 | To Mohan A/c | ₹25,000 - 1 mark.
2. Mohan A/c, credit side: Apr 6 | By Purchases A/c | ₹25,000 - 1 mark.

Answer: Purchases Account Dr side: 'Apr 6 To Mohan A/c 25,000'. Mohan's Account Cr side: 'Apr 6 By Purchases A/c 25,000'.

Balancing an account

Balancing means finding the difference between the totals of the two sides of an account and writing it so that both sides become equal.

Steps:
1. Total both sides separately (in rough).
2. Find the difference.
3. Write the difference on the side with the smaller total as 'To Balance c/d' (on the debit side) or 'By Balance c/d' (on the credit side). c/d means carried down.
4. Total both sides; the totals are equal and are written on the same line, ruled off.
5. Bring the balance down on the opposite side on the first day of the next period: 'To Balance b/d' (debit) or 'By Balance b/d' (credit). b/d means brought down.

Kinds of balance:

• Debit balance: debit total is larger (the b/d appears on the debit side). Assets, expenses, debtors, drawings, purchases usually have debit balances.
• Credit balance: credit total is larger. Capital, liabilities, creditors, incomes and sales usually have credit balances.
• Nil balance: both sides are equal; just total and rule off (e.g. a debtor who has paid in full).

Nominal accounts (expenses and incomes) are, at the end of the year, closed by transfer to the final accounts; for preparing the trial balance at Class IX level you may simply show their total as the balance.

Worked example

(2 marks) Arun's account shows on the debit side To Sales ₹15,000 and To Sales ₹7,000, and on the credit side By Cash ₹12,000. Balance it.

Try it first, then show the solutionSolution

1. Debit total 22,000; credit total 12,000; difference ₹10,000 written on the credit side as 'By Balance c/d 10,000'; both totals ₹22,000 - 1 mark.
2. Bring down 'To Balance b/d 10,000' on the debit side: a debit balance, so Arun still owes ₹10,000 (debtor) - 1 mark.

Answer: Balance c/d ₹10,000 on the credit side; totals ₹22,000; Balance b/d ₹10,000 on the debit side. Arun is a debtor for ₹10,000.

Worked ledger: Kavya Traders (April 2026)

From the thirteen journal entries of Kavya Traders (Journal chapter):

Cash Account

Dr Date	Particulars	₹	Cr Date	Particulars	₹
Apr 1	To Capital A/c	2,00,000	Apr 2	By Bank A/c	80,000
Apr 9	To Sales A/c	30,000	Apr 4	By Purchases A/c	40,000
Apr 18	To Rita A/c	18,000	Apr 25	By Rent A/c	6,000
Apr 20	To Commission Received A/c	2,000	Apr 28	By Drawings A/c	4,000
			Apr 30	By Salaries A/c	9,000
			Apr 30	By Balance c/d	1,11,000
	Total	2,50,000		Total	2,50,000
May 1	To Balance b/d	1,11,000

Bank Account

Dr Date	Particulars	₹	Cr Date	Particulars	₹
Apr 2	To Cash A/c	80,000	Apr 15	By Furniture A/c	15,000
			Apr 22	By Mohan A/c	25,000
			Apr 30	By Balance c/d	40,000
	Total	80,000		Total	80,000
May 1	To Balance b/d	40,000

Other balances: Capital ₹2,00,000 (Cr); Purchases ₹65,000 (Dr: 40,000 + 25,000); Sales ₹48,000 (Cr: 30,000 + 18,000); Furniture ₹15,000 (Dr); Commission Received ₹2,000 (Cr); Rent ₹6,000 (Dr); Drawings ₹4,000 (Dr); Salaries ₹9,000 (Dr). Mohan's and Rita's accounts are closed with nil balances, since Mohan was paid ₹25,000 and Rita paid ₹18,000 in full.

Worked example

(2 marks) Prepare Rita's account from: Apr 12 goods sold to Rita on credit ₹18,000; Apr 18 cash received from Rita ₹18,000.

Try it first, then show the solutionSolution

1. Debit side: Apr 12 To Sales A/c 18,000. Credit side: Apr 18 By Cash A/c 18,000 - 1 mark.
2. Both sides total ₹18,000: the account is closed with no balance - 1 mark.

Answer: Rita's Account: Dr Apr 12 To Sales A/c ₹18,000; Cr Apr 18 By Cash A/c ₹18,000. Totals ₹18,000 each; no balance (Rita owes nothing).

Ledger in real life

Each concept, met in an everyday situation. Read the situation, answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Topics in this chapter

• Balancing Ledger Accounts: Balance c/d, Balance b/d and Kinds of Balance
• Ledger: Meaning, Format and Posting from the Journal with To and By

Ledger: key facts

Posting rule

Account debited: debit side, 'To' + account credited. Account credited: credit side, 'By' + account debited.

Balance

Balance = larger side total − smaller side total; written on the smaller side as c/d

Brought down (b/d) on the larger side next period.

Debit balance accounts

Assets, debtors, expenses, losses, drawings, purchases

Credit balance accounts

Capital, liabilities, creditors, incomes, gains, sales

Cash account

Always a debit balance (or nil)

Cannot have a credit balance.

Abbreviations

c/d = carried down; b/d = brought down; J.F. = journal folio; L.F. = ledger folio

Ledger: diagrams to practise

Practise each one on paper: draw it from the checklist, then tick off every label.

How the school exam asks Ledger

The question patterns to expect, and the method that works for each.

Tricks to remember Ledger

Short memory aids. Say each one aloud once, then use it on a question the same day.

• To the left, By the right

  'To' entries live on the left (debit); 'By' entries live on the right (credit).

  Use it when: Posting.

• Name the partner

  Each account names its partner in the entry, never itself.

  Use it when: Particulars column.

• c/d down, b/d up

  Carry down on the lighter side; bring down on the heavier side.

  Use it when: Balancing.

Ledger: exam-level solved questions

Ordered from exam level to HOTS. Cover the solution, write your own, then compare step by step.

Case-study practice (Section B style)

Read the situation, then answer every part. In a school exam set on the board pattern this is a 9-mark question split into 2 + 2 + 5 marks.

Where the marks are

How a typical answer is split into step marks. Show every step: a right final answer alone rarely earns full marks.

Where students lose marks in Ledger

The slips examiners see most often, and what to write instead.

• ✗Mistake: Writing the account's own name in its particulars

  Each account must name the other account of the entry.

  Wrong working

  In Rent A/c: 'To Rent A/c 6,000'

  Right working

  In Rent A/c: 'To Cash A/c 6,000'

  ✓Do this: Look at the journal entry and write its partner account.

  Usually costs: 1 mark per posting.

• ✗Mistake: Mixing up To and By

  'To' goes on the debit side and 'By' on the credit side.

  ✓Do this: To the left, By the right.

  Usually costs: ½ mark per posting.

• ✗Mistake: Writing Balance c/d on the heavier side

  The balance is written on the lighter side to make the totals equal.

  ✓Do this: Find the bigger total first; put c/d on the other side.

  Usually costs: 1 mark.

• ✗Mistake: Totals on different lines

  Balanced accounts show equal totals on the same horizontal line.

  ✓Do this: Leave blank lines on the shorter side.

  Usually costs: Presentation marks.

• ✗Mistake: Forgetting Balance b/d

  The balance must be brought down to start the next period.

  ✓Do this: Write b/d on the opposite side with the next date.

  Usually costs: ½ to 1 mark.

Practice questions on Ledger

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

1. Q1 · 1 mark · MCQExam level

   The ledger is called the:
   (a) book of original entry
   (b) principal book of accounts
   (c) subsidiary book
   (d) cash book

   Hint

   Final accounts come from it.

   Answer

   (b) principal book of accounts.

2. Q2 · 1 mark · MCQExam level

   A credit balance in a customer's personal account means:
   (a) the customer owes the business
   (b) the business owes the customer
   (c) the account is closed
   (d) cash in hand

   Hint

   Credit balance on a person.

   Answer

   (b) the business owes the customer.

3. Q3 · 2 marks · Very short answerExam level

   What is meant by posting?

   Hint

   Journal to ledger.

   Answer

   Posting is the transfer of each journal entry to the ledger: the debit to the debit side of the account debited (with 'To') and the credit to the credit side of the account credited (with 'By').

4. Q4 · 2 marks · Very short answerExam level

   What do c/d and b/d mean? Where is each written?

   Hint

   Carried, brought.

   Answer

   c/d means carried down: the balance written on the lighter side to equalise totals. b/d means brought down: the same balance written on the opposite side at the start of the next period.

5. Q5 · 2 marks · Short answerHarder exam level

   Post 'Drawings A/c Dr ₹4,000; To Cash A/c ₹4,000' (28 April) to the ledger.

   Hint

   To and By.

   Answer

   Drawings A/c, debit side: Apr 28 To Cash A/c ₹4,000. Cash A/c, credit side: Apr 28 By Drawings A/c ₹4,000.

6. Q6 · 2 marks · Very short answerHarder exam level

   Why do Mohan's and Rita's accounts in Kavya Traders' ledger show no balance?

   Hint

   Paid in full.

   Answer

   Mohan was paid ₹25,000, exactly the amount owed for credit purchases, and Rita paid ₹18,000, exactly what she owed; both sides of each account are equal, so the accounts are closed with nil balance.

7. Q7 · 2 marks · Short answerHarder exam level

   A café's cash account: opening balance ₹5,000; receipts ₹12,000 and ₹3,500; payments ₹8,000, ₹2,700 and ₹4,300. Find the closing balance.

   Hint

   Total in minus total out.

   Answer

   Debit total 20,500; credit total 15,000; Balance c/d ₹5,500 on the credit side; b/d ₹5,500 debit (cash in hand).

8. Q8 · 2 marks · Short answerHOTS / competency

   A student shows 'By Cash A/c' on the debit side of Rent A/c. Explain the error and correct it.

   Hint

   To versus By.

   Answer

   Debit-side entries begin with 'To'. Rent paid in cash is posted as 'To Cash A/c' on the debit side of Rent A/c; 'By Rent A/c' goes on the credit side of Cash A/c.

9. Q9 · 5 marks · Long answerHOTS / competency

   'The ledger is more useful than the journal for knowing the position of a business.' Explain with three examples of information the ledger gives.

   Hint

   Balances.

   Answer

   The journal lists transactions date-wise, so finding the net effect on one item means searching every page. The ledger groups all entries of each account, so its balance shows the position at once: (1) the cash account shows cash in hand (Kavya Traders ₹1,11,000); (2) each personal account shows what a debtor owes or what is owed to a creditor (Arun owes ₹10,000; Star Suppliers is owed ₹6,000); (3) nominal accounts show total expenses and incomes (rent ₹6,000, commission ₹2,000). These balances also feed the trial balance and final accounts.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1. 1.What is the ledger?Show answer

   The principal book containing all accounts, where journal entries are classified account-wise.

2. 2.Which word starts debit-side particulars?Show answer

   To.

3. 3.Which word starts credit-side particulars?Show answer

   By.

4. 4.What does a debit balance in a personal account mean?Show answer

   The person owes the business (debtor).

5. 5.Can the cash account have a credit balance?Show answer

   No.

Quick revision checklist

The night before the exam: can you do each of these without looking?

• ☐Ledger: principal book; account-wise record.
• ☐T-account: Dr left, Cr right; Date, Particulars, J.F., Amount.
• ☐Debited account: debit side, 'To' + credited account.
• ☐Credited account: credit side, 'By' + debited account.
• ☐Balance c/d on the lighter side; equal totals; b/d on the opposite side next period.
• ☐Debit balance: assets, debtors, expenses, drawings, purchases. Credit balance: capital, liabilities, creditors, incomes, sales.
• ☐Cash: always debit or nil.

Ledger: frequently asked questions