WEEK/TERM: THIRD TERM/WEEK 3
CLASS: JSS 2
SUBJECT: Business studies
TOPIC: Ledger Entry
REFERENCE: Meybiks New Basic Business Studies
The ledger is the principal book of accounts. It is where all the transactions that take place in the organization are recorded. The information in the journal and other subsidiary books are recorded in the ledger.
Notes for the pupils:
A ledger is the principal book that contains permanent records of all the transactions of a business in a classified and summarized form.
TYPES OF LEDGER
Personal account: These are accounts for the name of individuals, form and business enterprises e.g chukwemeka account, JS Udu, Segun account ABC Nigeria Ltd, Debtors and Creditors accounts
- Impersonal account: These are accounts for property, item of expenditures and income. It can be divided into real and nominal account. Real accounts are accounts for something we can touch or move e.g land, building and machinery account etc. while nominal accounts are accounts for expenses incurred, income received, losses and gains e.g rent account, discount received account etc
ITEMS ON THE LEDGER
The following transactions took place on the record of Ayuba Enterprises during January 2010
- Started business with N100,000 cash on Jan. 1st
- Purchase gold of N75,000 by cash on Jan 2nd
- Sold gold N4,500 cash on Jan. 5th
- Took loan from Lanre in cash N25,000 on Jan. 7th
With the above transaction in Ayuba Enterprises, necessary ledgers need to be opened.
Capital account (Ledger)
Purchases account (Ledger)
Sales account (Ledger)
Loan account (Ledger)
- What is a ledger?
- Mention and explain the types of ledger.
- The following transactions took place on Ade Enterprises records. Post them in an appropriate ledger accounts
Jan. 5th started business with N80,000
Jan 6th sold goods worth N15,000 in cash
Jan 15th purchases of cocoa drink N60,000 by cash.