Ledger accounts
A ledger account accumulates entries for one asset, liability, equity, income or expense and yields a balance. For each account, post debits on the left and credits on the right. The difference between the sides is the balance, which is carried forward as appropriate. The general ledger holds accounts and control totals; subsidiary ledgers retain individual customer or supplier details. A credit entry can reduce an asset as well as increase a liability.
Worked example
The bank account records receipts and payments, giving the closing bank balance.
Common mistake
A ledger is the collection; an account is one component. Debits increase assets and expenses and reduce liabilities, equity and income; credits have the reverse effects.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: ledger account, T-account