Ledger
What is a ledger?
A ledger is a set of accounts.
The general ledger holds the accounts for assets, liabilities, capital, income and expenses.
The sales ledger holds one account for each credit customer. The purchases ledger holds one account for each credit supplier.
Example
A customer owes £700.00 and pays £250.00. The payment is entered in the general ledger as double entry. It is also entered in that customer's account in the sales ledger, which now shows £450.00 owed.
Why it matters
The sales ledger and the purchases ledger hold the detail behind two totals in the general ledger. The detail and the totals should always agree.
Practise it
Module, 5 rooms, PremiumCoding and the ledgers
See the first roomThe general ledger and the two subsidiary ledgers
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].