Chapter 1 - Division Of The Ledger

Question 1

What deferent sections make up the ledger as a whole ?

Answer 1

• receivables ledger
• payables ledger
• cash book
• general ledger

Question 2

What is the receivables ledger also known as ?

Answer 2

Sales ledger

Question 3

What is the payables ledger also known as ?

Answer 3

Purchase ledger

Question 4

What information does the receivables ledger hold ?

Answer 4

Personal accounts of all trade receivables

(AKA customers that have bought on credit)

Question 5

What information does the payables ledger hold ?

Answer 5

Personal accounts of all trade payables

(AKA suppliers that you have bought from on credit)

Question 6

What information does the **cash book* hold ?

Answer 6

it comprises the cash account and bank account

(Remember that the cash book isa also a boom of prime entry)

Question 7

What information does the general ledger hold ?

Answer 7

the remainder of accounts:

*income accounts
*expenses
*assets
*liabilities

Question 8

What are control accounts ?

Relating to the receivables and payables ledger

Answer 8

Control accounts are used in the general ledger as totals of the receivables and payables ledger.

you would have the Receivables ledger control account and the payables ledger control account