ZIMSEC O Level Principles of Accounts Notes: General Ledger

  • We has already been pointed out:
    1. Credit purchases are recorded in the Purchases Leger after they have been recorded in the Purchases Day Book/Purchases Journal
    2. Credit Sales are recorded in the Sales ledger with the Sales Day Book/Sales Journal being the book of original entry
    3. 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:
    1. The total of Sales and Purchases returns for the period in the Sales Returns Account(debit side) and Purchases Returns Account(credit side) respectively
    2. The purchase and sale of Fixed Assets
    3. Writing off bad debts
    4. Correction of errors in the ledger accounts e.g. a Suspense Account
    5. Opening a new set of books
    6. Adjustments to ledger accounts
    7. Recording Capital injections
    8. 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 Principles of Accounts Notes.