Q.Answer as directed (Fill in the blank with appropriate word/words): Purchases Book records all _______ purchases.
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🔒 Start your 14-day free trial to unlock the full solution →Concept understanding — Ledger Folio Meaning
Ledger Folio: The Address Book of Your Accounts
Think of a library. Every book has a unique shelf number — that number tells you exactly where to find it. Without it, you'd wander aimlessly. Now imagine your journal is a diary where every transaction is recorded in chronological order. The Ledger Folio (often written as L.F.) is that shelf number. It's a small reference written in the journal that tells you: "This transaction has been posted to page number X of the ledger."
In everyday terms, it's the cross-reference that connects the journal entry to its final home in the ledger account. When you see L.F. 15 in a journal, it means "go to page 15 of the ledger to see how this entry was posted."
The Precise Meaning
Ledger Folio is the page number of the ledger book where a particular account appears. In the journal, you write this number in the L.F. column after you have posted the entry to the ledger. In the ledger, you also have a J.F. (Journal Folio) column that points back to the journal page.
So it's a two-way street:
- Journal → Ledger: L.F. tells you where the entry went.
- Ledger → Journal: J.F. tells you where the entry came from.
In modern accounting software, these folio numbers are often auto-generated or replaced by transaction IDs, but the concept remains identical.
Why It Matters (The Real Reason)
Three reasons, and they're all practical:
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Audit Trail — If a mistake is found, you can trace it instantly. The L.F. tells you exactly which ledger page to check, and the J.F. tells you which journal page the entry originated from. Without this, you'd be flipping through hundreds of pages.
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Error Prevention — When posting entries, you mark the L.F. only after you've completed the posting. If you forget to mark it, you know the posting is incomplete. It's a built-in checklist.
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Verification — During trial balance preparation or final accounts, you can verify that every journal entry has been posted to the ledger. An empty L.F. column means the entry hasn't been posted yet.
A common mistake students make is filling the L.F. column before posting to the ledger. This defeats the purpose — you're supposed to fill it after posting, as confirmation that the work is done.
Accounting Treatment: Where Does It Appear?
The Ledger Folio is not an account — it's a reference column. So there is no debit or credit for it. It appears in two places:
1. In the Journal (the L.F. Column)
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 2024 Jan 1 | Cash A/c Dr. | 1 | 50,000 | |
| To Capital A/c | 5 | 50,000 | ||
| (Being business started with cash) |
Here, 1 means the Cash account is on ledger page 1, and 5 means the Capital account is on ledger page 5.
2. In the Ledger (the J.F. Column)
Cash Account (Page 1 of Ledger)
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) | …
The Purchases Book records only credit purchases of goods. …
The blank is credit.
The Purchases (Day) Book is a subsidiary book that records only the credit purchases of goods in which the firm deals; cash purchases (cash book) and purchases …
- CBSE 2018Set ANNUAL5 marksQ.Prepare Shirisha's account from the following particulars: 2017 January 1 Amount due to Shirisha Rs. 12,000 7 Goods purchased from Shirisha Rs. 16,000 14 Goods returned to Shirisha Rs. 5,000 19 Cash paid to Shirisha Rs. 6,000 23 Goods purchased from Shirisha Rs. 9,000 30 Shirisha's account is settled with 10% discount
›Reveal solutionSolution
Posting Shirisha's transactions (as a supplier) and settling the balance with a 10% discount closes her account at Rs. 37,000.
Method
A TS Inter 1st-year Accountancy exercise on personal ledger accounts, aligned with the NCERT/CBSE curriculum. As a supplier, Shirisha's account runs: Cr. — Balance b/d 12,000, Purchases 16,000, Purchases 9,000 = 37,000. Dr. — Purchase Returns 5,000, Cash paid 6,000, Cash paid 23,400, Discount 2,600 = 37,000. (The balance due before the 30 Jan settlement is 37,000−5,000−6,000=26,000; settled with a 10% discount of 2,600, the remaining Rs. 23,400 is paid in c …
- CBSE 2017Set ANNUAL5 marksQ.Prepare Geetha account from the following particulars: 2014 March 7 Balance due from Geetha Rs. 3,500 8 Sold goods to Geetha Rs. 1,500 10 Purchased goods from Geetha Rs. 1,000 15 Paid cash to Geetha Rs. 800 23 Received cash from Geetha Rs. 500 25 Returned goods to Geetha Rs. 200
›Reveal solutionSolution
Preparing Geetha's personal account (she is both a debtor and a creditor across these transactions) gives a closing balance of Rs. 1,500 due from her.
Method
A TS Inter 1st-year Accountancy exercise on personal ledger accounts, aligned with the NCERT/CBSE curriculum. Using 'debit the receiver, credit the giver': Dr. — Balance b/d 3,500, Sales to Geetha 1,500, Cash paid to Geetha 800, Goods returned to Geetha 200 (she received these) = 6,000. Cr. — Purchases from Geetha 1,000, Cash received from Geetha 500 (she gave these) = 1,500. Balancing figure (Dr. > Cr.) = …
- CBSE 2016Set ANNUAL5 marksQ.Prepare Jyothi account from the following particulars: 2015 February 1 Amount due the Jyothi Rs. 8,000 4 Goods sold to Jyothi Rs. 11,000 12 Goods returned by Jyothi Rs. 4,000 16 Cash received from Jyothi Rs. 3,000 22 Received cheque from Jyothi Rs. 6,000 28 Jyothi account settled with 10% discount
›Reveal solutionSolution
Preparing Jyothi's personal ledger account from the given transactions, and settling the closing balance with a 10% cash discount, shows the business finally receives Rs. 5,400 in cash and allows Rs. 600 as discount.
Method
This ledger-posting problem is a standard TS Inter 1st-year Accountancy exercise on personal accounts, aligned with the NCERT/CBSE accountancy treatment of ledger preparation.
Jyothi's Account
Dr. Date Particulars Amount (Rs.) Cr. Date Particulars Amount (Rs.) Feb 1 To Balance b/d 8,000 Feb 12 By Sales Returns a/c 4,000 Feb 4 To Sales a/c 11,000 Feb 16 By Cash a/c 3,000 Feb 22 By Bank a/c 6,000 Feb 28 By Discount a/c 600 Feb 28 By Cash a/c 5,400 Total 19,000 Total 19,000 … - CBSE 2015Set ANNUAL5 marksQ.Prepare Sudha account from the following: 2014 Feb 1 Amount due from Sudha Rs. 8,000 Feb 2 Goods sold to Sudha Rs. 11,000 Feb 12 Goods returned by Sudha Rs. 4,000 Feb 16 Cash received from Sudha Rs. 3,000 Feb 22 Received cheque from Sudha Rs. 6,000 Feb 28 Sudha's account settled with 10% discount
›Reveal solutionSolution
Posting Sudha's transactions and settling the final balance with a 10% discount shows she pays Rs. 3,600 cash and is allowed Rs. 400 discount.
Method
A TS Inter 1st-year Accountancy exercise on personal ledger accounts, aligned with the NCERT/CBSE curriculum.
Sudha's Account: Dr. — To Balance b/d 8,000, To Sales 11,000 = 19,000. Cr. — By Sales Returns 4,000, By Cash 3,000, By Bank 6,000 = 13,000. Balance due before the 28 Feb settlement = 19,000 − 13,000 = Rs. 6,000; a 10% discount on this is Rs. 600, so Sudha pays the remaining Rs. 5,400 in …
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