Debtors Ledger

The Debtors Ledger is one of the subsidiary ledgers to the general ledger. It accumulates information as a result of monthly postings from the Sales Journal.

The purpose of the Sales Journal is to store and provide detailed knowledge about financial transactions involving sales to customers on credit i.e. no money was paid by the customer at the time the sale was made.

The purpose of the Debtors Ledger is to provide information on which customers owe money to the business as a result of sales in credit, and of course, how much they owe. The customers who owe money to the business are called DEBTORS.

sales ledgerBefore the advent of computerised accounting systems, the Debtors ledger would have looked something like the illustration on the right. The would be one card for each customer, and each card would provide a listing of all transactions made by the customer.

Nowadays, the debtors ledger is just a part of an electronic database e.g. MYOB, Quickbooks, etc. However, the principles are just the same.

 

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