Nominal ledger revision (chapter 4) PDF

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Summary

revision on the nominal ledger...

Description

Accounting Nominal ledger = the accounting record which analyses all of the entities financial records Ledger accounts (T accounts) = summarise all the individual transactions listed in the books of original entry

T accounts… Debit

Name of account

Credit

When it comes to drawing up the financial statements… Income and expense ledger accounts will together form the statement of profit or loss Asset, liability and capital leger accounts will form the statement of financial position

Examples of ledger accounts in the nominal ledger include… Non-current assets  Plant and machinery at cost  Motor vehicles at cost Deduction from non-current assets  Plant and machinery, provision for accumulated depreciation  Motor vehicles, provision for accumulated depreciation Current assets  Inventories – raw material  Inventories – finished goods  Trade receivables  Cash Capital  Owners capital Current liability  Trade payables  Bank overdraf Expenses  Wages  Rent  Advertising expenses  Telephone expenses  Bank charges  Motor expenses Income  sales...