Ledger Entries

Ledger entries are the principal book of account in which all
business, financial transaction accounts opened and recorded.

Types of ledger are;

1. General ledger

2. Debtors or sales ledger

3. Creditors or purchases ledger

GENERAL LEDGER: Consist of main account  which are asset, liabilities,
income, expenses and capital.

DEBTORS OR SALES LEDGER: Contains a separate account for each
individual to whom goods and services and sold rendered on credit.

CREDITORS OR PURCHASES LEDGER: Is used for keeping the personal
account of creditors. items on a ledger are as

                                Classification of Account

                                              1; Personal account

                                                       2; 2;Impersonal

Personal account: Are the account in which transaction with persons or
other business and organization are recorded.

Impersonal account: Relate to asset, liabilities, income and expenses.

A. Division of impersonal account are real and nominal.

B. Real account relate to asset and liabilities eg, Furniture and
Fittings, Plant and Machinery etc.

Nominal account relate to incomes and expenses  of the business eg,
sales, salary etc.

Cash discount: Is a deduction given to buyers for paying their debts
within a specify period of time.

Trade discount: It is a deduction made by the seller before charging
the buyer with the price of goods.

Discount receipt: This is the discount granted by creditors or
suppliers to customers for prompt payment.

Discount allowed: This the reduction in the amount to be paid by
debtor or customer for prompt settlement of account.

Contra entries: These are situation in which two account offset each other.

                                WORK TO DO AT HOME

Mention the two main sides in a ledger.                                                         

What do you understand by the terms Discount received and Discount

You can go through your text book for further explanations on the topic.