and By while making posting in the Ledger. The word To' is used with the accounts which appear on the debit side of a Ledger Account. For example in the Salaries Account instead of writing only Cash" as shown above, the words "To Cash will appear on the debit side of the account. Similarly, the word "By is used with accounts which appear on the credit side of a Ledger Account. For example in the above case, the words "By Salaries A/C will appear on the credit side of the Cash Account instead of only "Salaries Alc". The words to and By do not have any specific meanings. Modern accountants are, therefore, ignoring the use of these words. r17 4.2.2 Balancing of an Account In business, there may be several transactions relating to one particular account. in Journal, these transactions appear on different pages in a chronological order while they appear in a classified form under that particular account in the Ledger. At the end of a period (say a month, a quarter or a year, the businessman will be interested in knowing the position of a particular account. This means, he should total the debits and credits of his account separately and find out the net balance. This technique of finding out the net balance of an account, after considering the totals of both debits and credits appearing in the account is known as Balancing the Account'. The balance is put on the side of the account which is smaller and a reference is given that it has been carried forward or carned down (c/f or c/4) to the next period. On the other hand, in the next period a reference is given that the opening balance has been brought forward or brought down (b/f or b/4) from the previous period. This will be dear with the help of the following illustration Mustration 1: Journalise the following transactions, post them the Ledger and balance the accounts as on 31st March, 2006. 1. Ram started business with a capital of Rs. 10,000 2. He purchased goods from Mohan on credit Rs. 2,000. 3. He paid cash to Mohan Rs 1,000. 4. He sold goods to Sutesh Rs. 2,000. 5. He received cash from Suresh Rs. 3,000. 6. He further purchased goods from Mohan Rs. 2,000. 7. He paid cash to Mohun Rs. 1,000 He further sold goods to Suresh Rs. 2,000. He received cash from Suresh Rs. 1,000 9