Kinds (Classifications) of ledger accounts
1) Debtors
ledger Accounts:
When customer purchases goods
on credit basis from the business concern, they becomes the “Debtors’ of the
firm. When all their accounts are recorded in one book that book is known as
“Debtors
ledger”. All the accounts in the Debtors ledger show only debit balances. The total balances of these accounts indicate
the total amount to be received from the customers.
2) Creditors
Ledger Accounts:
When the firm purchase goods on
credit basis from the Suppliers, the suppliers become “Creditors” to the firm.
When
all the accounts of creditors are recorded in one book, that book is known as
“Creditors Ledger”. All the accounts in the creditors ledger show only credit
balances. The Total balance of these accounts indicates the total amount to be
paid by the company to the supplier.
3) General
Ledger:
The business firm acquires many
assets for successful operation of the business similarly it makes different
types of expenditure in the process of business. The business gets income out
of its business transactions. When the company records all these accounts that
means accounts related to the assets, income and expenditure in one book, that
book is known as “General Ledger”
Assets
a/c = Goods, Cash, Machinery etc…,
Expenses a/c = Wages, Salaries, freights, etc..,
Income
a/c = Commission received, discount received etc..,
Are
recorded in general, ledger accounts related to real accounts and the balance
of all types of accounts related to nominal accounts always show only debit
balance. On the other hand, all the accounts related to incomes show only
credit balances.
4) Self
Ledger:
When all accounts which
indicate the relationship between proprietor and the business firm are recorded
is one book, that book is known as “Self Ledger” this is called “Private
Ledger”
Eg: Capital Account, Drawing Accounts, Profit and
Loss a/c’s etc..,
This ledger is highly
confidential.
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