Ledger entries

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

Typesof 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 whomgoods 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 follows,,,,,,,Date,particulars,folio,amount.

                                Classification of Account                                                                                                                                   1; Personal account                                                                                                                                    2; 2;Impersonal account

Personalaccount: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 promfpt 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 HOMEMention the two main sides in a ledger.                                                                                                                                What do you understand by the terms Discount received and Discount allowed?.


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