The general ledger and the two subsidiary ledgers
One ledger holds the double entry. Two more hold an account for each customer and each supplier. See what lives where.
Task 1Three ledgers3 questions
A ledger is a set of accounts. Larkfield has three.
- General ledger
- the accounts for assets, liabilities, capital, income and expenses. The double entry is made here
- Sales ledger
- one account for each credit customer
- Purchases ledger
- one account for each credit supplier
The sales ledger and the purchases ledger are called subsidiary ledgers. They hold the detail behind two totals in the general ledger.
The general ledger is also called the nominal ledger.
Task 2The total and the detail3 questions
Task 3One transaction, two ledgers3 questions