Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: General Ledger
- We has already been pointed out:
- Credit purchases are recorded in the Purchases Leger after they have been recorded in the Purchases Day Book/Purchases Journal
- Credit Sales are recorded in the Sales ledger with the Sales Day Book/Sales Journal being the book of original entry
- Cash/Bank transactions are recorded in the Cash Book and/or Petty Cash Book(s)
- All the other transactions and the corresponding entries for sales and purchases are recorded in the General Ledger
- These include all transactions that have the General Journal as their book of original entry
- Thus the General Journal includes the following transactions:
- The total of Sales and Purchases returns for the period in the Sales Returns Account(debit side) and Purchases Returns Account(credit side) respectively
- The purchase and sale of Fixed Assets
- Writing off bad debts
- Correction of errors in the ledger accounts e.g. a Suspense Account
- Opening a new set of books
- Adjustments to ledger accounts
- Recording Capital injections
- Recording Drawings
- This is not an exhaustive list nor is it meant to be
- In short if it does not go in the Purchases Ledger, Sales Ledger, Cash Book or Petty Cash Book(s) it goes in the General Ledger
- Unlike with the other ledgers where we gave examples of entries the General Ledger examples are scattered across these notes
To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.