Bookkeeping and Accounting All-in-One For Dummies, UK Edition

Chapter 4

Looking at Ledgers

In This Chapter

Understanding the value of the Nominal Ledger

Developing ledger entries

Posting entries to the ledger accounts

Adjusting ledger entries

In this chapter, we discuss the accounting ledgers. You meet the Sales Ledger, Purchase Ledger and Cashbook and discover how they interact with the Nominal Ledger. We tell you how to develop entries for the ledger and also how to enter (or post) them from the original sources. In addition, we explain how you can change already posted information or correct entries in the Nominal Ledger.

The most common ledgers include:

• Sales Ledger: This tracks day-to-day sales, and contains the accounts of debtors (customers).
• Purchases Ledger: This tracks day-to-day purchases, and contains the accounts of creditors (suppliers).
• Nominal Ledger: Sometimes called the General Ledger, this ledger is used for all the remaining accounts, such as income and expense accounts as well as including the Purchase Ledger account balance and the Sales Ledger account balance. There are also accounts for items such as stock, value-added ...