2. 6 Ledger Accounting and Double entry Bookkeeping

Question 1

1. What is 3 types of ledger?

Answer 1

• trade receivables ledger. (receivables ledger)
• Trade payables ledger. (payables ledger)
• Nominal ledger. (general ledger)

Question 2

2. What is trade receivables ledger?

Answer 2

shows records of customers’ personal accounts.

Question 3

3. What is trade payables ledger?

Answer 3

shows records of suppliers’ personal accounts.

Question 4

4. What is a nominal ledger?

Answer 4

• Contains the remaining double entry accounts, such as assets, equity, expenses and income.

Question 5

5, What is the double entry system?

Question 6

6. What is an account?

Answer 6

a record showing money coming into and going out of a business,.

Question 7

7. What is the accounting equation?

Answer 7

Assets = Capital+ liabilities
the equation that is the foundation of double entry accounting.

Question 8

8. What is revenue?

Answer 8

is the income earned by a business form the selling of goods and services.

Question 9

9. What is purchases?

Answer 9

the purchasing of capital, resources in order to use them for the production of goods and services.

Question 10

10. What are the errors not revealed by the double entry system?

Answer 10

• Transposition.
• Original entry.
• Principle
• Compensating errors
• Omission
• Commission
• Complete reversal of entries