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I saw your lecture but needed some light so Please correct me regarding the statements.
1) General ledgers are called T-ledgers accounts but receiveable ledgers and payable ledgers are not called T-ledger accounts because in accounts there are double entry (two-sided effect)?
2) Receiveable account and Payable account of general ledgers are called “Control Accounts” because they have Total figures in them. But they are called control accounts because they do a check on individual balances in receiveable ledger and payable ledger?
3) Is it true that we prepare nominal general ledgers and balancing these accounts both at the end of each month – not at the year-end?
4) The debit side and credit-side of receivable ledger is used to record:
DR receiveable
CR cash receivedThe debit side and credit side of payable ledger is used to record:
DR cash payment
CR payable5) Is it true we prepare “List of Balances” from the balances of receivable ledger and payable ledger at the end of each month – not at the year-end?
6) Is it true that we do Adjustments of 4 items in our nominal T-ledgers accounts
at the year-end before we close our accounts of general ledgers?7) We close the accounts of SOPL items in a new account called SOPL Account. But we do not close the accounts of SOFP item because they are used as it is next year?
8) Is it also true that Trial Balance is prepared at the year-end (not at end of the month)?
9) Financial statements are prepared from the balances of each items on general ledgers once we have closed their accounts?
10) All the Financial statements are prepared using balances from general ledgers – not just only SOPL and SOFP?
Sorry for the lengthy question. Thank you
1. Ledgers are not called t-accounts. Ledgers are books (and are books containing accounts).
2. They are control accounts because check the receivables and payables ledgers
3. Usually the accounts will be balanced off at the end of each month (but that is not a ‘law’ it is up to the individual company).
4. Correct
5. Again, it is likely to be done at the end of each month, but that it up to the company.
6. Correct
7. Correct
8. See 5
9. Correct
10. Not correct. The Statement of Cash Flows and the notes to the accounts are not prepared directly from the balances on the accounts.
Sorry to ask in this thread. I hope you do not mind.
1) General ledgers is a book (ie ledger) where we record our entries in a T-shaped accounts which are called “T-Accounts”?
2) Receivable ledgers and Payable ledgers (ie personal ledgers) are called T-ledgers where we have individual T-ledgers of each customer and supplier?
3) In general ledgers: we have a T-shaped account where we record double entry. The reason it is an account because it has double entry system?
4) In personal ledgers: we have a T-shaped account where we have no double entry. The reason it is NOT an accout because it has no double entry system?
5) Account is where we record our double entry system with debits and credits likewise in the general ledgers BUT IF it is without double entry then it is not regarded as an account likewise in the personal ledgers?
Are they all correct?
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