The General Ledger
The General ledger contains all the other accounts of the business which are not connected with customer sales, purchases from clients or cash and bank accounts. The sort of accounts that would be held in the general ledger would be things such as:
 Owners capital |
Asset Accounts (i.e. fixtures and fittings, equipment / machinery, furniture etc.) |
|
Drawings accounts - Money taken out of the business by the owner(s) |
Expense accounts |
| Equipment / Machinery Account | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| DR | CR | |||||||||
| Debit Side | Credit Side | |||||||||
| Date | Details | Folio | Amount | Date | Details | Folio | Amount | |||
| May 01 | Balance b/d | 19,015.00 | ||||||||
| May 09 | Credit purchase of oven liner (Ovens 'R' Us) | C950 | 160.00 | |||||||
| May 15 | Sale of hot-plates | C963 | 75.00 | |||||||
| May 31 | Balance c/d | 19,100.00 | ||||||||
| £19,175.00 | £19,175.00 | |||||||||
| June 01 Balance b/d | £19,100.00 | |||||||||
What this shows was that on May 01 Pepe's Pizza Parlour owned equipment to the value of £19,015.00.
On May 09 Pepe purchased an oven liner on credit for £160.00. Pepe was the receiver of equipment and the account was therefore debited.
On May 15 Pepe sold hot-plates on credit to the value of £75.00. Pepe was the giver and the account is therefore credited.
On May 31 the account was balanced off and at this point Pepe's Pizza Parlour owned furniture to the value of £20,000.00.
The furniture account owes Pepe this figure. It is therefore his debtor and the account balance is carried down to the left hand side of the ledger.
| The Creditors' ledger | The Debtors' ledger | The Cash ledger | Return to the menu? |
If you have looked at all of the ledgers, you are ready to learn about double entries.