What are Ledgers in Accounting?
Ledgers in accounting contain summaries of financial information recorded in the books of prime entry. Here’s how they work and an example of what they look like.
Learn Accounting
Want to learn accounting for free? Make sense of accounting with these jargon-free guides for accounting students and bookkeepers. Understand the accounting process, a series of 6 steps taken to gather, summarise and present the financial information of a business:
- Source Records
- Books of Prime Entry
- Ledger Accounts
- Trial Balance
- Journal Entries
- Financial Statements
Purchase Day Book Explained
A purchase day book is used to record details of goods & services bought by a business. Here’s an example of how it is used & why it’s needed.
What is a Bank Reconciliation?
A bank reconciliation helps to check for errors in the cash book. Learn why they are necessary and take a look at an example of preparing one
Petty Cash Book Explained
The petty cash book records what happens with cash in a business. This guide uses an example to discuss why it matters & the imprest system which allows for a cash float to be maintained.
Cash Book in Accounting
The cash book is a record of all the money that flows in and out of a business. Here’s an example of one & what it has to do with accounting
Sales Ledgers Explained
Sales ledgers record the activity of customer sales, credits and payments. Here you’ll find an example ledger to explain how they work and how they fit in when it comes to accounting.
Sales Day Book Explained
A sales day book is a record of sales invoices raised by a business. Here’s an example of one, the reasons it’s needed & an introduction to setting up sales journals.
Books of Prime Entry Explained
The books of prime entry summarise information from the source records of a business in accounting. In this guide, you’ll find out about the six types of books of prime entry, why they’re important and how they are updated in this guide.
What is a Credit Note?
A credit note reduces the amount a customer has to pay on an invoice or records a refund. Here is an example and how they fit into accounting.
What is an Invoice?
An invoice is a legal document sent customers to request payment. Here you’ll learn what they look like and what information they must have.