TRANSACTIONS LEDGERS

DEBTORS:-

        A debtor is a person who owes money to the business. A person from whom the amount is due, to the business.

JOURNAL:-

       It is day books transactions are recorded as soon as they are entered.

LEDGER:-

       In ledger different A/c's for each party assets is maintained for e.g. Purchase A/c, Sales A/c.

CREDITORS:-

        A creditor is a person to whom money is owed. A person to whom amount is to be paid from business.

DOUBLE ENTRY SYSTEM:-

     The system used for recording transactions is known as Double Entry System. According to this system every business transactions affects on minimum two accounts of the business. On the basis of this assumption, at the time of accounting every business is recorded under two different accounts.

ENTRY:-

    Writing of the transactions in the books of accounts is called as entry.

DEBIT/CREDIT:-

    While accounting i.e. recording the transactions, the expenses and incomes are recorded in two different parts or sides of the account. Each account has two different sides. The left side indicates 'Debit' and the right side indicates 'Credit'.
e.g. each cash receipts and cash payments of the business are recorded in 'Cash Account'. Cash receipts of the business are recorded on the left side of the cash a/c, whereas Cash payments are recorded on the right side of the cash a/c.
    If any transaction is recorded on the left side of the cash account it is termed as 'the account is debited', whereas if any transaction is recorded on the right side of the cash account it is termed as 'the account is credited'.