Ledgers
What are the four (4) types of ledgers?
The General Ledger
The Purchases Ledger
The Sales Ledger
Cashbook
If NJH Stationery purchases chairs from Courts on credit which two accounts will be affected?
Chairs and Courts
What is the second step in the balancing off process?
Find the difference between the smaller side and the bigger side.
Which balances go into the trial balance?
Balance brought down or balance b/d
Debtors can be found in which ledger?
Sales Ledger
Which of the following should not be called purchases?
i) Purchase of a motor van for use in the business
ii) Goods bought on credit
iii) Items bought for the prime purpose of resale
i) Purchase of a motor van for use in the business
What is the difference called at the end of the month?
Balance Carried Down or Balance c/d
State at least two purposes of the trial balance
1. Checks accuracy of the T accounts.
2. Aids in the preparation of financial statements
What name is given to the persons that are found in the purchases ledger?
Creditors
Sold goods to J. Shaw for cash. What accounts are affected?
Sales and Cash
What is the difference called at the beginning of the following month?
Balance Brought Down or Balance b/d
What are the headings in the trial balance?
Details, Debit and Credit
Every other account is found in this ledger apart from the creditors, debtors, cash, and bank transactions. What is the name of the ledger?
The General Ledger
Goods we returned to P. Pinnock. What accounts are affected?
Return Outwards and P.Pinnock
The balances at the end of each account will be place in the __________________ as a list.
Trial Balance
What happens if the trial balance is not balanced?
There is an error in the ledger accounts.
What transactions are found in the cashbook?
Cash and bank transactions.
J. Shaw returned some of the goods to us. What accounts are affected?
J. Shaw and Return Inwards
If both sides of an account are added and are equal, what is the next step?
The account is balanced, hence it will not be entered in the trial balance.
Who is the most suitable person to prepare a trial balance?
An accountant