AccountingCode 7707
The double entry system of book-keeping
What this topic asks you to be able to do
- the system of book-keeping known as double entry
- how to draw up ledger accounts
- the procedure for posting transactions onto the ledger accounts
- the method for working out ledger account balances and carrying them across to the financial statements
- how to interpret a ledger account and the balance it shows
- ledger accounts which can be shown in a three-column format that carries a running balance
- the way the ledger is split into a sales ledger, a purchases ledger and a nominal (general) ledger
- how a business can keep its ledger accounts in digital form