Double Entry

Question 1

Balancing off a ledger account process

Answer 1

1. Add higher total to total of both columns
2. Insert the ‘balance c/f’ figure to the lower column
3. Insert the same number as ‘balance b/f’ to the higher column

Question 2

Carrying forward the drawings ledger account

Answer 2

The closing c/f balance on the DRAWINGS account is transferred to the CAPITAL ledger account

Question 3

Carrying forward the profit and loss ledger account

Answer 3

Closing c/f balance of the P&L account transferred to the CAPITAL ledger account