CATERPILLAR- part b) general ledger

For any individual company, management must prepare a single set of financial statements. The "make up" of those financial statements is founded on transactions: "Physical" transaction -> Recorded in a book of prime entry -> Posted to the general ledger -> Extracted in a trial balance -> Period end adjustments (depreciation, inventory, bad debts, etc) -> financial statements. Although individual transactions may take place in many different locations - retail outlets, warehouse, etc - they must ultimately be recorded in one general ledger maintained by the accounts/finance department. A "head office" is where all the "administrative" functions including accounts/finance will take place.

professor books of prime entry is the location where ledger accounts of suppliers and customers exist on an individual basis, right? Like Ledger account of B customer or C supplier, so all transactions with that entity basically. and at the end of each day total sales or purchases are posted to respective control accounts, which are included as a part of general ledger, true maam? General ledger includes only control accounts? or they include something else too? Am sorry maam for asking such a silly doubt, but there has been a long gap since i last finished my F3 paper!

The individual a/cs of suppliers and customers are kept in separate ledgers. Postings from books of prime entry are in TOTAL to control a/cs - and INDIVIDUALLY to the separate ledgers. Only one of these - control a/c posting OR separate ledger postings can be part of the double entry - e.g. double entry is to the control a/c (in the general ledger) and the separate ledgers are kept as "memoranda". If you need further clarification I suggest first taking a quick look at our FA notes - you should be able to navigate to control a/cs from the contents.