Ledgers

Question 1

What are the three ledgers?

Answer 1

Receivables ledger
Payables ledger
General ledger

Question 2

What does the receivables ledger include?

Answer 2

A T-account for each credit customer.

Question 3

What do the customer accounts in the receivables ledger include?

Answer 3

Invoices, credit notes, payments, discounts and amount owed by that customer

Question 4

What does the payables ledger include?

Answer 4

A T-account for each credit supplier

Question 5

What do the customer accounts in the payables ledger include?

Answer 5

Invoices, credit notes, payments, discounts and amount owed to that supplier

Question 6

What does the general ledger include?

Answer 6

A T-account for every item that will appear in financial statements

Question 7

What are some of the items that will appear in the financial statements?

Answer 7

Revenue, purchases, expenses, etc

Question 8

Where will each credit note or invoice be entered into? 4

Answer 8

One of the books of prime entry; either the sales journal, purchases journal, purchases returns journal or sales returns journal

Question 9

Where will each invoice or credit note also be entered into?

Answer 9

Either the receivables or payables ledger

Question 10

Where will the monthly total from each book of prime entry be entered into?

Answer 10

The relevant section of the general ledger.