AccountsISC Class 11 · Ledger

Ledger Posting and Balancing: ISC Class 11 Accounts

Updated 17 October 2026 · Fact-checked

The ledger is the principal book of accounts in which transactions recorded in the journal are classified account-wise. Each account has a debit side (Dr, "To") and a credit side (Cr, "By"). After posting, each account is balanced: the difference of the two sides is entered on the smaller side as "By/To Balance c/d" and brought down on the opposite side as "Balance b/d".

Write the difference as Balance c/d on the smaller side so both totals match, then bring it down as Balance b/d on the opposite side.

Illustration drawn for QuestionBuddy.

Understand Ledger: Format, Posting from the Journal and Balancing

Meaning and importance. The ledger is the book of final entry. It gives the total effect of all transactions on one account, helps prepare the trial balance and final accounts, and shows balances of debtors and creditors at any time.

Posting rules. (1) Each journal entry is posted to two or more accounts. (2) The account debited in the journal is debited in the ledger; the particulars name the *other* account, prefixed "To". (3) The account credited is credited in the ledger; the particulars name the other account, prefixed "By". (4) In a compound entry, post each account and write "Various" or the individual account names. (5) Cross-reference with J.F. and L.F.

Balancing. Total each side. Find the difference. Write it on the smaller side as *Balance c/d* so that both totals are equal. Write it on the opposite side after the totals as *Balance b/d* on the first day of the next period.

Personal and real accounts are balanced. A debit balance of a personal account is an asset (debtor); a credit balance is a liability (creditor).
Nominal accounts are not balanced; they are closed by transferring to the Trading or Profit and Loss Account.
Accounts with only one entry need no balancing.

Types of balances. Asset accounts: normally debit. Liability and capital accounts: normally credit. Expense accounts: debit. Income accounts: credit.

Link to trial balance. The balances of all ledger accounts, listed, give the trial balance.

Ledger: Format, Posting from the Journal and Balancing: key facts

Balance of an account: Balance = Larger side total - Smaller side total | Written on the smaller side as c/d; Then brought down as b/d.
Posting rule: Debit side: To (other account) | Credit side: By (other account); Name the opposite account.
Trial balance check: Sum of debit balances = Sum of credit balances | After all balancing; Arithmetical accuracy.

How to answer Ledger: Format, Posting from the Journal and Balancing questions

Post every entry to both accounts, then balance.

1Open an account for each name in the journal.
2Post debits to the debit side and credits to the credit side, naming the other account.
3Total both sides and find the difference.
4Write the balance c/d on the smaller side and b/d on the other.

Ledger: Format, Posting from the Journal and Balancing 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 account

Suppose a customer buys goods worth Rs 30,000 on credit, pays Rs 18,000, and returns goods worth Rs 2,000.

How much does the customer still owe?

Try it first, then show the solutionSolution

Debit side: 30,000. Credit side: 18,000 + 2,000 = 20,000.
Balance = 30,000 - 20,000 = 10,000 on the debit side.

Answer: Rs 10,000 (debit balance, a debtor).

Memory hook: Bigger side minus smaller side.

Tricks to remember Ledger: Format, Posting from the Journal and Balancing

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

To on left, By on right
"To" on the debit side, "By" on the credit side.
Use it when: Posting.
c/d on the smaller side
Carry down on the smaller side so the totals match.
Use it when: Balancing.
Nominal closed, real carried
Expenses and incomes are closed; assets and liabilities are carried forward.
Use it when: Year end.

Ledger: Format, Posting from the Journal and Balancing: solved examples

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

Example 1: Posting rule · 1 mark · MCQBoard level

In the ledger, the particulars column of the debit side of an account starts with:
(a) By (b) To (c) Dr (d) c/d

Try it first, then show the solutionSolution

The debit side is described as "To" the other account.

Answer: (b) To

Example 2: Which accounts are balanced? · 3 marks · Short answerBoard level

State which of the following accounts are balanced and which are closed at the year end: Cash, Rent, Sales, Debtors, Capital, Wages. Give reasons. (3 marks)

Try it first, then show the solutionSolution

Cash, Debtors, Capital are real or personal: balanced and carried forward.
Rent, Sales, Wages are nominal: transferred to Trading or Profit and Loss.

Answer: Cash, Debtors, Capital are balanced; Rent, Sales, Wages are closed to Trading/Profit and Loss.

Example 3: Post and balance · 8 marks · Long answerHarder board level

Journal: 1 April, Cash Dr, To Capital 1,00,000. 3 April, Purchases Dr, To Rohan 40,000. 5 April, Mohan Dr, To Sales 30,000. 8 April, Rohan Dr, To Cash 25,000. 10 April, Cash Dr, To Mohan 18,000. 12 April, Rent Dr, To Cash 4,000. 15 April, Sales return Dr, To Mohan 2,000. Post to the ledger, balance the accounts and prepare a trial balance. (8 marks)

Try it first, then show the solutionSolution

Cash: Dr 1,00,000 + 18,000 = 1,18,000; Cr 25,000 + 4,000 = 29,000; balance 89,000 Dr.
Mohan: Dr 30,000; Cr 18,000 + 2,000 = 20,000; balance 10,000 Dr.
Rohan: Cr 40,000; Dr 25,000; balance 15,000 Cr.
Trial balance: Dr 89,000 + 10,000 + 40,000 + 4,000 + 2,000 = 1,45,000; Cr 1,00,000 + 15,000 + 30,000 = 1,45,000.

Answer:

Account	Dr (Rs)	Cr (Rs)
Cash	89,000
Mohan	10,000
Purchases	40,000
Rent	4,000
Sales return	2,000
Capital		1,00,000
Rohan		15,000
Sales		30,000
Total	1,45,000	1,45,000

Example 4: Missing entry · 4 marks · Short answerHarder board level

In Bina's account the debit side totals Rs 64,000 and the credit side Rs 52,500 before balancing. A cheque of Rs 5,500 received from her was wrongly posted to Bina's debit side instead of the credit. Find the correct balance, and the error in the trial balance if no other error exists. (4 marks)

Try it first, then show the solutionSolution

Remove the 5,500 from debit: debit 58,500; add to credit: 58,000. Correct balance = 58,500 - 58,000 = 500 Dr.
Wrong balance: 64,000 - 52,500 = 11,500 Dr.
Debit balances are overstated by 11,000, so the debit total exceeds the credit total by 11,000.

Answer: Correct balance Rs 500 Dr; the trial balance debit would exceed the credit by Rs 11,000.

Example 5: Reading a ledger · 4 marks · Short answerHOTS / competency

A creditor's account shows: Cr: purchases 80,000 and 45,000; Dr: payment 70,000, discount 1,400, returns 3,600. The owner believes Rs 125,000 is still due. Compute the true balance and explain the owner's error. (4 marks)

Try it first, then show the solutionSolution

Credit total = 1,25,000. Debit total = 70,000 + 1,400 + 3,600 = 75,000.
Balance = 1,25,000 - 75,000 = Rs 50,000 Cr.
The owner counted only the credit side and ignored payments, discount and returns.

Answer: True balance Rs 50,000 (creditor); the owner ignored the debit side.

Where students lose marks in Ledger: Format, Posting from the Journal and Balancing

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

Mistake: Writing "To" on the credit side
Mixing sides.
Wrong working
Cr side: To Sales
Right working
Cr side: By Sales
Do this: Credit gets By.
Usually costs: 1 mark.
Mistake: Balance c/d on the larger side
Misunderstanding.
Wrong working
Larger side c/d
Right working
Smaller side c/d
Do this: Write the balance on the side that makes totals equal.
Usually costs: 2 marks.
Mistake: Balancing nominal accounts
Applied to all.
Wrong working
Rent c/d to next year
Right working
Rent transferred to P&L
Do this: Nominal accounts are closed.
Usually costs: 1-2 marks.

Exam tips

Name the other account in each entry.
Total both sides even when the balance is zero.
Cross-check with a trial balance.

Practice questions on Ledger: Format, Posting from the Journal and Balancing

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
A debit balance in a personal account indicates:
(a) a creditor (b) a debtor (c) capital (d) income
Hint
Person owes the business.
Answer
(b) a debtor
Q2 · 3 marks · Short answerBoard level
Explain the posting of a compound journal entry with an example. (3 marks)
Hint
Each account separately.
Answer
In a compound entry, each account is posted separately with the opposite accounts named, e.g., Rent Dr 5,000, Insurance Dr 2,000, To Cash 7,000: the cash account is credited "By Various 7,000" or by each item, and Rent and Insurance are debited "To Cash".
Q3 · 6 marks · Long answerHarder board level
Post to the ledger and show the balance in Cash and in Devi's account: Cash sales 12,000; credit sales to Devi 20,000; cash received from Devi 15,000; Devi returned goods 1,500; paid wages 3,000; bought furniture for cash 8,000; opening cash 10,000. (6 marks)
Hint
Cash Dr 37,000.
Answer
Cash: Dr 10,000 + 12,000 + 15,000 = 37,000; Cr 3,000 + 8,000 = 11,000; balance 26,000 Dr. Devi: Dr 20,000; Cr 15,000 + 1,500 = 16,500; balance 3,500 Dr.
Q4 · 4 marks · Short answerHarder board level
The closing balance of Sharma's account was Rs 8,500 Dr. During the next month he was sold goods for Rs 14,000, paid Rs 9,500, and returned goods worth Rs 1,200; a discount of Rs 300 was allowed. Find the new balance and state whether he is a debtor or creditor. (4 marks)
Hint
Start with the opening balance.
Answer
Debit side: 8,500 + 14,000 = 22,500; credit side: 9,500 + 1,200 + 300 = 11,000; balance Rs 11,500 Dr; he is a debtor.
Q5 · 3 marks · Short answerHOTS / competency
An accountant finds that the debit total of a Purchases account is Rs 3,45,000 but the journal total is Rs 3,54,000. Give two possible reasons, and state how they would show in the trial balance. (3 marks)
Hint
Transposition.
Answer
Possible reasons: a transposition (3,45,000 for 3,54,000) or an omitted posting of Rs 9,000. The debit side of the trial balance would be less by Rs 9,000 than the credit side, unless the credit was also omitted.

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.Ledger is a book of?Show answer
Final entry.
2.Which side takes "By"?Show answer
Credit.
3.Nominal accounts are?Show answer
Closed, not balanced.
4.Debit balance of a personal account?Show answer
Debtor.
5.Balance c/d goes on?Show answer
The smaller side.

Ledger: Format, Posting from the Journal and Balancing: frequently asked questions

What is a ledger folio?

The page number of the ledger account.

Is cash book a ledger?

It serves as both cash book and cash account.

Do all accounts need balancing?

No, single-entry accounts do not.

Who posts the ledger?

The ledger clerk.