chapter 3: the ledger

Question 1

explain the ledger

Answer 1

book with detailed information of individual accounts of assets, liabilities, income ,capital, drawings , debtors and creditors

Question 2

explain the division of the ledger into specialist areas

Answer 2

debotrs ledger- a book where all individual accounts of credit customers are kept
creditors ledger- book where all individual accounts of credit suppliers are kept
general ledger- book where records of nominal and real accounts are kept

Question 3

what are the advantages of dividing ledgers into three categories?

Answer 3

• work can be divided between several people
• it easier for reference as same type of accounts are kept together
• easier to introduce checking procedures