(i) Ledger is known as the principal book of accounts because it is very useful for a business enterprise.
(ii) It is a book which contains all sets of accounts, namely, personal, real and nominal accounts.
(iii) Account-wise Balance can be determined from the Ledger.
(iv) The Ledger Accounts are opened or maintained based on journal entries passed.
(v) The balances in the ledger accounts show the net effect of transactions during a particular period in various accounts.
(vi) The personal accounts give the net amount due to creditors and the net amount due from debtors, real accounts show the values of assets and nominal accounts will show sources of incomes and expenses.
(vii) The financial statements can be prepared from the ledger balances.

Debit balance : Cash, Furniture, Debtors, Purchases, Salaries paid, Computer
Credit balance : Creditors, Sales, Commission received, Capital

(i) The debit and credit columns of an account are to be totalled separately.
(ii) The difference between the two totals is to be ascertained.
(iii) The difference is to be placed in the amount column of the side having lesser total. 'Balance c/d' is to be entered in the particulars column against the difference and in the date column the last day of the accounting period is entered.
(iv) Now both the debit and credit columns are to be total and the totals will be equal. The totals of both sides are to be recorded in the same line horizontally.
(v) The total is to be distinguished from other figures by drawing lines above and below the amount.
(vi) The difference has to be brought down to the opposite side below the total.
(vii) 'Balance b/d' is to be entered in the particulars column against the difference brought down and in the date column, the first day of the next accounting period is entered.
(viii) If the total on the debit side of an account is higher, the balancing figure is debit balance and if the credit side of an account has higher total, the balancing figure is credit balance. If the two sides are equal, that account will show nil balance.

The procedure of posting from journal to ledger is as follows:
(i) Locate the ledger account that is debited in the journal entry. Open the respective account in the ledger if already not opened. Write the name of the account in the top middle. If already opened, locate the account from the ledger index.
(ii) Record the date of the transaction in the date column on the debit side of that account.
(iii) Record the name of the account credited in the Journal with the prefix 'To' in particulars column.
(iv) Record the amount of the debit in the 'Amount column'.
(v) Locate the Ledger account that is credited in the journal entry. Open the respective account in the ledger if already not opened.
(vi) Write the name of the account in the top middle. If already opened, locate the account from the ledger index.
(vii) Record the name of the account debited in the journal entry particulars column with the prefix 'By' and write the amount in the amount column.

In an account, when the total of debits and credits are equal, it is closed by merely writing the total on both the sides. The nil balance indicates the equality of benefits received and given by that account.

(i) Furniture
(ii) Capital
(iii) Bank
(iv) Salary
Capital, Bank - Personal account
Furniture - Real Account
Salary - Nominal account

(i) googds sold to kumar on credit
(ii) goods returned by kumar
(iii) Cash received from kumar
(i) Debit side
(ii) Credit side
(iii) Credit side

The purpose of a ledger account is to classify the transactions according to their nature and item.

No, it is not true. Debit does not always mean increase and credit does not always mean decrease. It depends upon the accounts involved.