MGMT 1A Chapter Notes - Chapter 2.3: Promissory Note, The Ledger, Accounts Payable
Document Summary
Ledger : the entire group of accounts maintained by a company. Provides the balance in each of the accounts. Keeps track of changes in these account balances. General ledger : contains all the asset, liability, and stockholders" equity accounts. Companies arrange the ledger in the sequence in which they present the accounts in the. Includes interest payable, salaries & wages payable, financial statements, beginning with the balance sheet accounts (each account is numbered for easier identification) Ledger = provides the balance in each of the accounts . Cash account shows amount of cash available to meet current obligations. A/r account shows amounts due from customers. A/p account shows amounts owed to creditors. Simple t-account form = very useful for illustration purposes. In practice, the account forms used in ledgers are much more structured three-column form of account : Balance in the account is determined after each transaction.
