LEDGER BOOKS
Ledger books are the books of final entry which contains the various accounts to which the entries made in the Books of Original entry are transferred.
DIVISION OF LEDGER :
| Purchases Ledger Book: | Contains all the accounts of Suppliers. |
| Sales Ledger Book: | Contains all the accounts of Customers. |
| General Ledger Book: | Contains all the rest of the accounts like, Assets Accounts, expenses account, losses account, etc., and also the Total purchases account, Total sales account, Total Sales returns account, Purchases Returns account. It is also called as Nominal ledger |
Advantages Of Dividing The Ledger:
- It facilitates division of labour in the maintenance of ledger.
- It becomes easy to locate errors in ledger accounts.
- It helps the ledger clerks to complete their respective work in time with perfection.
- It becomes easy to refer to any particular account.
- State and explain one advantage of dividing the ledger into these three sections.
Work can be shared between several people.
Easier for reference as same type of accounts are kept together . Easier to introduce checking procedures.
- Give one example of an account which may appear in each section of the ledger.
General ledger : Any non-current asset, inventory, capital, drawings, loan, sales, purchases, returns, expenses, incomes, etc
Sales ledger : Credit customers/debtors/trade receivables
Purchases ledger : Credit suppliers/creditors/trade payables
