Ledgers | Accounting for GCSE/IGCSE - Year 11 PDF Download

What is the ledger?

The ledger serves as a compilation of all the accounts associated with a business.

• It may take the form of a physical book, with each account occupying a separate page.
• Alternatively, it could be a digital spreadsheet file, where each account is allocated to its own sheet.

The ledger is categorized into three distinct sections:

• Sales ledger
• Purchases ledger
• Nominal (general) ledger

Sales, Purchases & Nominal Ledgers

Overview of the Sales Ledger

• The sales ledger encompasses the accounts of all credit customers, also referred to as trade receivables accounts.
• It specifically excludes the sales account, which is instead housed in the nominal ledger.

Overview of the Purchases Ledger

• The purchases ledger compiles accounts of credit suppliers, specifically trade payables.
• Accounts related to purchases do not directly enter the purchases ledger; instead, they are recorded in the nominal ledger.

Overview of the Nominal (General) Ledger

• The nominal ledger encompasses all business accounts except those of credit customers and suppliers, serving as the general ledger.
• Within the nominal ledger, you'll find records like the sales account and the purchases account.