Division of the

ledger into
specialist areas
Division of the ledger
into specialist areas
• Dividing the ledger into
sections makes it more
convenient to use as the
same type of accounts can
be kept together and the
task of maintaining the
ledger can be divided
between several people.
 Division of the
ledger into
specialist areas

• It also enables checking

procedures (in the form
of control accounts) to
be introduced and may
reduce the possibility of
fraud.
Division of the
ledger into
specialist areas
Sales ledger

Purchases ledger

General/nominal
ledger

Cash book
Division of Sales ledger
the ledger
into Purchases ledger
specialist
areas General/
nominal ledger

Cash book
Sales ledger

• This is also referred to

as the debtors ledger
or trade receivables
ledger.
• All the personal
accounts of credit
customers are kept
in the sales ledger.
Purchases ledger

• This is also referred to as

the creditors ledger or
trade payables ledger.
• All the personal accounts
of credit suppliers are
kept in the purchases
ledger.
 Nominal ledger

• This is also referred to as the general

ledger. Apart from the cash account,
the bank account and the accounts of
credit customers and credit suppliers,
all the remaining accounts are kept
in the nominal ledger.
 Nominal ledger
• This ledger will contain accounts
of assets, liabilities, expenses,
incomes, sales, purchases and
returns. Asset accounts are
known as real accounts.
• Accounts for expenses, income
and capital are known as nominal
accounts.
Cash books

• These contain
the main cash
book and the
petty cash book.