An accounting package is a type of business software designed to help businesses manage their accounting processes including invoicing, payroll, accounts payable, accounts receivable, and general ledger functions.
The Accounts Payable Ledger is a detailed accounting record of amounts owed to suppliers, listing each credit transaction involving a supplier and tracking the outstanding balances.
Adjusting Journal Entries (AJEs) are accounting entries made to a company’s general ledger at the end of an accounting period to ensure that revenues and expenses are recorded in the period in which they occur. These entries are essential for complying with the matching principle and accrual accounting methods.
A cashbook is an accounting book used to record all cash receipts and cash disbursements, and its balance ties closely to the cash account in the general ledger, which is reflected on the balance sheet.
A closed account refers to either a bank or charge account that has been terminated or an accounting ledger that has been closed off at the end of a financial period.
In accounting, a closing entry is one of the final entries made at year-end to close accounts and transfer the amounts to financial statements, ensuring all temporary accounts are reset for the next accounting period.
A contra account is an account used in a general ledger to reduce the value of a related account. These entries are used to adhere to accounting principles such as matching and conservatism.
A control account is a general ledger account that summarizes the total balances of subsidiary ledgers, ensuring accuracy and efficiency in financial reporting.
A comprehensive guide covering the definition, examples, FAQs, related terms, online resources, and suggested books for further study on Creditors' Ledger Control Account, also known as Purchases Ledger Control Account.
A nominal ledger control account recording the total of entries made to individual debtors' ledgers from the sales day book and the cash receipts journal, used to ensure internal accounting controls.
The General Ledger (GL) is a key component of an organization's accounting system, serving as a comprehensive record of all financial transactions made over the life of an organization.
A ledger account is a record in a ledger where all the financial transactions pertaining to a specific person, item, or activity (such as a debtor or stock item) are documented.
The nominal ledger, also known as the general ledger, contains the nominal accounts and real accounts necessary to prepare the financial statements of an organization. It differs from personal ledgers, such as debtors' and creditors' ledgers, which contain the accounts of customers and suppliers respectively.
A Post-Closing Trial Balance is prepared after closing entries are recorded and posted, ensuring that beginning balances for the next accounting period are accurate and free of temporary accounts.
A private ledger is a subset of an accounting ledger that holds confidential and sensitive financial information, isolated from the general ledger for security and privacy reasons.
The Purchase Day Book, also known as Bought Day Book in the US, is a financial ledger in accounting where all purchase and expense transactions made on credit are recorded before being posted to the individual supplier accounts in the General Ledger.
The purchases ledger control account is a summary account within the general ledger used to record the total amount owed to suppliers and other creditors for goods or services received on credit.
The Sales Ledger Control Account, also known as the Debtors' Ledger Control Account, is a summary account in the general ledger that consolidates all individual debtor balances from the sales ledger.
A subsidiary ledger provides detailed information supporting a specific umbrella account found in the general ledger, ensuring data consistency and detailed record-keeping.
