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when writing substantive procedures, i get confused between the terminology for ledgers..can u please give me a simple definition for, general ledger, nominal ledger, the ledger control account, and the list of balances…how are they all connected??
general ledger = nominal ledger
Contains all accounts except cash (kept in cash book/petty cash book). Also contains receivables and payables control accounts:
Receivables control account = total of receivables: detailed balances kept in receivables ledger (one account for each customer). Receivables ledger occasionally called sales ledger ie details of each sales customer.
Payables control account = total of payables: detailed balances kept in payables ledger (one account for each supplier). Payables ledger occasionally called purchase ledger iedetails of everyone from whom goods bought.
Receivables ledger list of balances = each balance listed from receivables ledger and added up. Should equal to receivables control account.
Payables ledger list of balances = each balance listed from payables ledger and added up. Should equal to payables control account.
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