BOOKS OF ACCOUNTS

FINANCIAL ACCOUNTING SSS1 FIRST TERM        

WEEK 3

BOOKS OF ACCOUNTS

Performance Objectives

Students should be able to:

1. Draw the format of a ledger account.
2. State three differences between the ledger and the journal.

Contents

Books of accounts are the books that are used in recording financial transactions in accounting.

The books of accounts in use are:

1. The Ledger – The Principal book
2. The Journal – The Subsidiary book

The Ledger

The ledger is the principal book of an account which contains in a classified form, the permanent records of all the financial transactions of a business.

The recording into the Ledger is done in classified form using ledger accounts.

The Ledger account is divided into two sides i.e. The Debit…