Ledger Accounts Flashcards
Ledger Account
contains records of business transactions
Ledger
a large book where business transactions are entered into individual accounts
Accounts
records of financial transactions related to an individual
Sales Ledger
contains records of sales made on credit, returned goods and payments received from customer
Purchases Ledger
contains records of purchases made on credit, returned goods and payments made to the supplier
General Ledger
a collection of accounts which records all other transactions of a business
Control Accounts
total accounts which summarise a number of other accounts
Sales Ledger Control Account
the totals of all the trade receivable accounts in the sales ledger- shows amount customers owe to business
Purchases Ledger Control Account
the totals of all the trade payable accounts in the purchase ledger- shows amount owed to suppliers
Trade Receivable (debtor)
a customer who owes money to a business
Trade Payable (creditor)
a supplier to whom a business owes money
Assets
items owned: premises, cars, computers, amounts owed to a business
Liabilities
items owed by a business: overdrafts, bank loans
Owner’s Capital
the amount invested in the business by the owner and also the profits made by the business
Expense Items
money going out: wages, rent paid
