Category: Ledger book

Cash Book Format

We are listening many times terms like “cash” and “money” in any business and shops. because all trading transactions are on cash flow and it is the base of any business with format of in bank or in hand. So that, a successful business should keep its cash transactions very clear with true format in […]

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Identifiable Intangible Assets

This section deals with the various intangibles which can be identified as distinct and separate property rights. These assets can be contrasted to others, e.g., goodwill, which by virtue of being specifically unidentifiable, require special accounting considerations. List of Identifiable Intangible Assets Patents:  Granted by the Federal government, patents give the owner an exclusive right to manufacture and sell, or […]

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The Purchase Day Book

We have already seen that the purchase ledger is a mirror image of the sales ledger. You will therefore not be surprised to learn that the purchases day book is a mirror image of the sales day book. Do not be confused if you find it called the purchases journal or some other name, and do not be […]

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Purchase Ledger

If you have thoroughly understood the section on the sales ledger you will have no trouble at all understanding this section on the purchase ledger. This is because the purchase ledger is a mirror image of the sales ledger. It is used for invoices submitted to the business by suppliers. The layout is similar to the accounts in the nominal […]

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Sales Ledger

If you only have one customer, you will not need a detailed sales ledger, just one account in the nominal ledger. Nor will you need a sales ledger if your sales are entirely for cash. On the other hand, businesses that sell on credit may have many customers. For them, an efficient sales ledger outside the nominal ledger […]

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SALES DAY BOOK

Sales day book is a place for posting sales invoices into the sales ledger and the nominal ledger. This could be done laboriously one by one, but it is better to group them together and cut down the work. This posting medium is usually called the sales day book, though you might find it called the sales journal or some […]

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Nominal ledger

This main ledger, which is often known as the nominal ledger, is explained in more detail, and the various posting mediums are explained. Nominal ledger Books of prime entry Nominal journal (or just journal) Sales ledger Sales day book Purchase ledger Purchase day book The Nominal ledger The nominal ledger is the principal ledger. Other ledgers may […]

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