Commercial StudiesICSE Class 9 · Ledger

Ledger: Meaning, Format and Posting from the Journal with To and By (ICSE Class 9)

Updated 18 October 2026 · Fact-checked

The ledger is the principal book of accounts in which all transactions affecting one account are collected under that account. Posting transfers each journal entry to two ledger accounts: in the account debited, write the amount on the debit side with To and the name of the account credited; in the account credited, write it on the credit side with By and the name of the account debited. Each account shows the other account of the entry.

Debited account gets the amount on its left with To; credited account gets it on its right with By, each naming the other account.

Illustration drawn for QuestionBuddy.

Understand Ledger: Meaning, Format and Posting from the Journal with To and By

Meaning and importance. The ledger is the book containing all the accounts of a business, in which the transactions recorded in the journal are classified account by account. It is the principal book (the book of final entry) because the final accounts are prepared from it.
Importance: it shows the net position of each account (cash in hand, what each debtor owes, what is owed to each creditor); it classifies transactions of one kind together; it gives the balances for the trial balance and the final accounts; and it helps owners and managers find information quickly.
Journal and ledger: the journal is the book of original entry (date order); the ledger is account-wise. Recording in the journal is journalising; recording in the ledger is posting.

Format. Each account is a T-account with the debit side on the left and the credit side on the right, with Dr at the top left and Cr at the top right. Each side has four columns: Date, Particulars, J.F. (journal folio, the page of the journal) and Amount. The account title is written at the top centre (Cash Account).

Posting rules.
1. In the account debited in the journal: enter the amount on its debit side and write To followed by the name of the account credited.
2. In the account credited in the journal: enter the amount on its credit side and write By followed by the name of the account debited.
3. Write the date and the J.F., and write the ledger page in the L.F. column of the journal.
Each account shows the other account of the entry, not itself.

Example. Journal entry on 18 Jan: Rent A/c Dr 5,000; To Cash A/c 5,000. In Rent A/c, debit side: 18 Jan, To Cash A/c, 5,000. In Cash A/c, credit side: 18 Jan, By Rent A/c, 5,000.

Running example: Radhika Stores (assumed figures). Entries 1 to 4 of the Journal topic are posted as: Cash A/c debit: Jan 1 To Capital A/c 1,50,000; credit: Jan 3 By Bank A/c 60,000 and Jan 5 By Purchases A/c 25,000. Capital A/c credit: Jan 1 By Cash A/c 1,50,000. Bank A/c debit: Jan 3 To Cash A/c 60,000. Purchases A/c debit: Jan 5 To Cash A/c 25,000 and Jan 8 To Anil A/c 40,000. Anil A/c credit: Jan 8 By Purchases A/c 40,000.

Neighbouring topics: balancing the accounts and carrying the balance down are on the next page of this chapter.

Ledger: Meaning, Format and Posting from the Journal with To and By: key facts

Posting rule: Debited account: To (name of credited account) on the debit side | credited account: By (name of debited account) on the credit side; Each account shows the other account.
Journal versus ledger: Journal: original entry, date order | ledger: principal book, account-wise; Journalising and posting.
Columns: Date
particulars
J.F.
amount on each side; J.F. is the journal page.

Ledger: Meaning, Format and Posting from the Journal with To and By in real life

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

A running tally for each person

Suppose a shopkeeper keeps a separate page for each customer showing what the customer bought and what was paid.

How is this like a ledger and what does the journal correspond to?

Try it first, then show the solutionSolution

Each page is an account (like a customer account in the ledger).
The shopkeeper's daily diary of all sales in date order is like the journal.
Entries are copied from the diary to the pages: posting.

Answer: Each customer page is a ledger account; the daily diary is the journal; copying entries is posting.

Memory hook: Diary is the journal; pages are the ledger.

Tricks to remember Ledger: Meaning, Format and Posting from the Journal with To and By

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

To on the left, By on the right
Debit side uses To; credit side uses By.
Use it when: Posting.
Show the other account
An account never names itself in its particulars.
Use it when: Posting.
J.F. is the journal page
J.F. points back to the journal; L.F. points forward to the ledger.
Use it when: Folios.

Ledger: Meaning, Format and Posting from the Journal with To and By: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: Folio column · 1 mark · MCQBoard level

The column of a ledger account that shows the page of the journal from which an entry is posted is:
(a) L.F. (b) J.F. (c) Date (d) Amount

Try it first, then show the solutionSolution

J.F. is the journal folio.

Answer: (b) J.F.

Example 2: Post entries 1 to 4 · 4 marks · Long answerHarder board level

Post these journal entries of Radhika Stores to the ledger: Jan 1 Cash A/c Dr, To Capital A/c 1,50,000; Jan 3 Bank A/c Dr, To Cash A/c 60,000; Jan 5 Purchases A/c Dr, To Cash A/c 25,000; Jan 8 Purchases A/c Dr, To Anil A/c 40,000. Show the sides and the particulars for Cash, Capital, Bank, Purchases and Anil.

Try it first, then show the solutionSolution

Cash A/c: debit side Jan 1 To Capital A/c 1,50,000; credit side Jan 3 By Bank A/c 60,000 and Jan 5 By Purchases A/c 25,000. (1 mark)
Capital A/c: credit side Jan 1 By Cash A/c 1,50,000. (1 mark)
Bank A/c: debit side Jan 3 To Cash A/c 60,000. Purchases A/c: debit side Jan 5 To Cash A/c 25,000 and Jan 8 To Anil A/c 40,000. (1 mark)
Anil A/c: credit side Jan 8 By Purchases A/c 40,000. (1 mark)

Answer: See the steps for each account and side.

Example 3: Post entries 5 to 8 · 3 marks · Short answerHarder board level

Post to the accounts of Sales, Bela, Rent and the three Cash entries: Jan 12 Cash A/c Dr, To Sales A/c 30,000; Jan 15 Bela A/c Dr, To Sales A/c 20,000; Jan 18 Rent A/c Dr, To Cash A/c 5,000; Jan 20 Cash A/c Dr, To Bela A/c 20,000.

Try it first, then show the solutionSolution

Sales A/c credit: Jan 12 By Cash A/c 30,000 and Jan 15 By Bela A/c 20,000. (1 mark)
Bela A/c: debit Jan 15 To Sales A/c 20,000; credit Jan 20 By Cash A/c 20,000. Rent A/c debit: Jan 18 To Cash A/c 5,000. (1 mark)
Cash A/c: debit Jan 12 To Sales A/c 30,000 and Jan 20 To Bela A/c 20,000; credit Jan 18 By Rent A/c 5,000. (1 mark)

Answer: See the steps for each account.

Example 4: Case study: a posting error · 4 marks · Case-basedHOTS / competency

The journal shows Salaries A/c Dr 9,000; To Bank A/c 9,000 on 30 March. A student posts it in Salaries A/c on the credit side as "By Bank A/c 9,000" and in Bank A/c on the debit side as "To Salaries A/c 9,000".
(i) Find the mistake. (1)
(ii) Write the correct postings. (2)
(iii) What does J.F. show? (1)

Try it first, then show the solutionSolution

(i) The sides are reversed: the debited account must be posted on its debit side with To, and the credited account on its credit side with By.
(ii) Salaries A/c, debit side: Mar 30 To Bank A/c 9,000. Bank A/c, credit side: Mar 30 By Salaries A/c 9,000.
(iii) J.F. is the journal folio, the page of the journal from which the entry is posted.

Answer: (i) sides reversed (ii) Salaries debit To Bank; Bank credit By Salaries (iii) the journal page number

Example 5: Why the other account · 3 marks · Short answerHarder board level

Why does every ledger account show the name of the other account of the entry? Say on which side To and By are used.

Try it first, then show the solutionSolution

It makes it possible to trace the transaction to its other aspect in the double entry. (1 mark)
To is used on the debit side with the name of the account credited. (1 mark)
By is used on the credit side with the name of the account debited. (1 mark)

Answer: The other account links the two aspects; To on the debit side, By on the credit side.

Where students lose marks in Ledger: Meaning, Format and Posting from the Journal with To and By

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

Mistake: Writing the account's own name in particulars
The other account is forgotten.
Wrong working
Cash A/c: To Cash A/c
Right working
Cash A/c: To Capital A/c
Do this: Show the other account.
Usually costs: 1 mark
Mistake: Using To on the credit side
The words are swapped.
Wrong working
By Sales on the debit side
Right working
To Sales on the debit side; By Sales on the credit side
Do this: To is debit, By is credit.
Usually costs: 2 marks
Mistake: Posting both aspects to one account
Dual aspect is ignored.
Wrong working
Only the debit posted
Right working
Post both the debit and the credit
Do this: Each entry goes to two accounts.
Usually costs: 2 marks

Exam tips

Rule a T-account neatly with Dr and Cr at the top.
Write To only on the debit side and By only on the credit side.
Post both aspects of every entry.
Keep the dates in the date column.

Practice questions on Ledger: Meaning, Format and Posting from the Journal with To and By

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

Q1 · 1 mark · MCQBoard level
In a ledger account, the word By is written on the:
(a) debit side (b) credit side (c) both sides (d) neither side
Hint
Credit side.
Answer
(b) credit side
Q2 · 2 marks · Very short answerBoard level
What is posting?
Hint
Journal to ledger.
Answer
Posting is the transfer of journal entries to the ledger accounts concerned.
Q3 · 3 marks · Short answerHarder board level
Post these journal entries to the accounts of Mohan, Bank and Purchases: Jan 4 Purchases A/c Dr 12,000, To Mohan A/c 12,000; Jan 20 Mohan A/c Dr 12,000, To Bank A/c 12,000.
Hint
Write each side with To or By.
Answer
Mohan A/c: credit side Jan 4 By Purchases A/c 12,000; debit side Jan 20 To Bank A/c 12,000. Bank A/c: credit side Jan 20 By Mohan A/c 12,000. Purchases A/c: debit side Jan 4 To Mohan A/c 12,000.
Q4 · 3 marks · Short answerHarder board level
State the side and the particulars in each account for: Furniture A/c Dr 18,000, To Bank A/c 18,000 (Mar 6) and Cash A/c Dr 1,200, To Commission Received A/c 1,200 (Mar 9).
Hint
Debited account: debit side with To.
Answer
Furniture A/c, debit side: Mar 6 To Bank A/c 18,000. Bank A/c, credit side: Mar 6 By Furniture A/c 18,000. Cash A/c, debit side: Mar 9 To Commission Received A/c 1,200. Commission Received A/c, credit side: Mar 9 By Cash A/c 1,200.
Q5 · 3 marks · Short answerHOTS / competency
A ledger account shows on its debit side "Jan 18 To Cash A/c 5,000" and on another page the Cash A/c shows on its credit side "Jan 18 By Rent A/c 5,000". Name the account, the original journal entry and the nature of the transaction.
Hint
The first account is the one with the debit.
Answer
The first is Rent A/c. The journal entry is Rent A/c Dr 5,000; To Cash A/c 5,000. It records payment of rent of Rs 5,000 in cash.

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.Which side takes To?Show answer
The debit side.
2.Which side takes By?Show answer
The credit side.
3.What does J.F. stand for?Show answer
Journal folio.
4.What is the ledger called?Show answer
The principal book of accounts.
5.What is a T-account?Show answer
A ledger account with debit on the left and credit on the right.
6.What is journalising?Show answer
Recording in the journal.

Ledger: Meaning, Format and Posting from the Journal with To and By: frequently asked questions

Does each entry go to one account?

No, to two accounts: one debited and one credited.

Why is the ledger the principal book?

Final accounts are prepared from it.

Where do I write the ledger page?

In the L.F. column of the journal.