Ledger Entries – JSS2 Business Studies Lesson Note (Second Term)

Ledger entries

A ledger is a principal book in which transactions are recorded in a summarized form. It is the final destination of all transactions in the subsidiary book.

Dr.                                        Format of ledger                                                     Cr

 SIMPLE CLASSIFICATION OF LEDGER ACCOUNTS

1. PERSONAL ACCOUNT: This ledger account records the persons account such as debtors, creditors, capital, and bank account
2. IMPERSONAL ACCOUNT: This records non–person accounts such as real and nominal accounts.
3. Real Account: records the assets of the business such as building, motor vehicle, furniture, stock, etc.

1. Nominal Account: records the income and expenses of the business such as insurance, transport, salary, etc.

Ledger Account is divided into

•       Sales ledger/debtors ledger
•       Purchases ledger/creditors ledger
•       General ledger
•       Private ledger

SALES LEDGER/DEBTORS LEDGER: This is used to record accounts relating to debtors. Debtors are those who owe money that belongs to an organization.

PURCHASES LEDGER: This records the account of creditors. Creditors are people to whom money is owned or persons from whom goods have been bought.

GENERAL LEDGER: This takes care of both real and nominal account

PRIVATE LEDGER: This is a ledger where properties’ confidential accounts are recorded.