Within every organisation there are three ledgers; Sales, Purchases, and General.
The Sales Ledger is a collection of accounts relating to the credit sales an organisation makes. When a customer purchases a product, or books a service on credit and agree to pay for that later, a bookkeeper must record this. The Sales Ledger holds the information of all Customers, their purchases within the organisation, payments to be made by them, and more. (this is not the recording of money, but rather the recording of what is happening, when it’s happening).
The Purchases Ledger is a collection of accounts relating to the credit purchases an organisation makes. When the organisation purchases materials, electricity, etc, on credit and agree to pay for that later, a bookkeeper must record this. The Purchases Ledger holds the information of all Suppliers, our purchases with them, payments to be made by the organisation, and more. (this is not the recording of money, but rather the recording of what is happening, when it’s happening).
The General Ledger is a collection of accounts relating to all funds coming in and out of an organisation. Unlike the other ledgers where they only record what is happening, the General Ledger records the actual movement of funds – i.e., when a customer pays off what they owe, when the organisation pays their suppliers what they owe, the purchase/selling of assets, stationary, computers, etc.
The accounts that make up the three ledgers are known as “Daybooks”.
The daybooks, as mentioned, are accounts that make up the three ledgers within an organisation.
There are 3 accounts (daybooks) that make up The Sales Ledger, these are: