The practice of totaling the debit and credit sides of an account and inserting a balance to make them equal at the end of a financial accounting period.
A creditors' ledger is a memorandum ledger account used to track individual creditors' accounts, contributing to internal control by recording and comparing transactions with the nominal ledger.
The Debtors' Ledger, also known as the Sales Ledger or Sold Ledger, is a memorandum ledger account where individual debtors' accounts are recorded. It is an essential component in the internal control system used to monitor sales, payments, discounts, and returns.
The General Journal, often regarded as the book of original entry, is a pivotal element in the accounting process. It is where all financial transactions are initially recorded before they are posted to the ledger accounts. The General Journal includes straightforward and complex entries and serves numerous accounting purposes.
Real accounts refer to ledger accounts used to record property, plant, equipment, and other assets, distinguishing them from nominal accounts which track revenues and expenses.
