When is each of the following ledgers used? Elaborate your answers 1. General Ledger 2. Payables ledger 3. Receivables ledger
When is each of the following ledgers used? Elaborate your answers
1. General Ledger
2. Payables ledger
3. Receivables ledger
1.
A general ledger is used in accounting to keep track of all of a business's transactions. Assets, liabilities, income, expenses, and owner's equity are the categories in which transactional data is structured within a general ledger. The accountant creates the trial balance once each sub-ledger has been closed out. The trial balance data is then used to construct financial statements for the company, such as the balance sheet, income statement, statement of cash flows, and other financial reports.
2.
All invoices received from suppliers have been detailed in the accounts payable ledger. The ledger keeps track of each invoice's unique payable information, such as the invoice number, invoice date, supplier name, and amount paid. It serves as a subsidiary ledger from which summary-level data is posted to the general ledger on a regular basis. The ending accounts payable ledger balance is compared to the general ledger account balance to ensure that the two balances match; this comparison is done as part of the period-end closing process.
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