JUNIOR CYCLE BUSINESS STUDIES Help Deli Bites Ltd prepare its accounts A
Go to page 153 of your Activities and Accounts Book to read about a business and help it to prepare its accounts.
Posting entries from the analysed cash book to the general ledger
A
Go to page 156 of your Activities and Accounts Book to practise posting entries from the analysed cash book to the general ledger.
The general ledger is sometimes called the nominal ledger.
Look up the meaning of the word ‘nominal’ in the dictionary. Why do you think this name is suited to the general ledger?
By preparing a general ledger, a business will have the information at hand to prepare a trial balance.
CHAPTER SUMMARY
• When the analysed cash book has been completed for a given period, the totals are posted to the general ledger.
• A general ledger is a record of an organisation’s totals over a period of time. It includes accounts for assets, expenses, income, gains and liabilities.
• The debit side of the general ledger is used for recording assets and expenses. • The credit side of the general ledger is used for recording income, gains and liabilities. • Current assets are cash or are expected to be converted into cash within one year. • Fixed assets are long-term assets. • A current liability is money that is owed by the business within one year. • A fixed liability is money that is owed by the business over a term of more than one year. • By preparing a general ledger, the business will have the information in needs to prepare a trial balance.
Taking stock A
Go to page 161 of your Activities and Accounts Book to check what you have learned in chapter 23.
