- Nominal ledger
- Purchase ledger
- Sales ledger
The most basic ledger among the three is the nominal ledger. Normally, every business operates in terms of transactions. Some transactions result into a decrease in the amount of assets whereas some result into the decrease of the business’ assets. Apart from the three ledgers, the transactions are also recorded in to some subsidiary accounts such as the capital account, asset account, liability account, gain account, expenditure account and the loss account. Depending on what kind of transaction is being recorded, it will be recorded on the rightful subsidiary account as well as a general ledger. The general ledger is what accountants refer to as the nominal ledger. In most cases, the nominal ledger is always the largest. This is because it contains transactions from all the other subsidiary accounts. In other words, the larger the business, the larger the nominal accounts.
Just as the name suggests, a sales ledger is one where all the records of sales are maintained. However, the kind of sale will determine the number of records placed. As earlier stated, each transaction should be recorded in two accounts; the general ledger and the specific account ledger. In this case, if the sale was made on credit, the transaction will be recorded in the general ledger as sales and in the credit account. This will push for a complete record of accounts. A sales ledger is more like a nominal ledger in terms of its appearance. It is normally divided into two; the debit side and the credit side. The debit side is one on the left and the credit side is one on the right. Each client should also have his or her own account. There is no general account for customers. Many a times, the debit sum figure is higher than that of the credit side. This shows that the business transactions are profitable.
The purchase ledger is more or less similar to the sales ledger. The concept is the same the only thing that changes in this case is that the accounts are for purchases. In other words, the purchase ledger reflects the sales accounts. The invoices brought in by the suppliers are the ones used to fill in a purchase ledgers. The layout is similar to that of the sales or nominal ledger.