NOMINAL LEDGER
~ Dean Bloom ~
~ BloomTech Solutions ~
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| Sales Ledger | Purchase Ledger | Cash Book | Nominal Ledger | VAT | Fixed Assets | Profit / Loss |
NOMINAL LEDGER
Double Entry
Trial Balance
The
nominal ledger is the place where the - SALES
LEDGER, PURCHASE LEDGER, CASH
BOOK, VAT ACCOUNT,
FIXED ASSETS and
PROFIT / LOSS ACCOUNTS all come
together to balance each other.
Within a Nominal Ledger, the end result at the bottom, MUST always
balance to ZERO. (TRIAL BALANCE or "TB").
There are a large amount of items that are usually included in a Nominal Ledger / Trial Balance, but to help you understand the basics, here is a very simple example. If you understand this, you will be able to build on it, and fully understand more complicated accounts later.
I have excluded such items as Opening/Closing Stock, etc. to try and make this example easier to understand by those who are trying to learn the basics.
Please note, this is a very basic nominal ledger / trial balance
account for learning purposes only. Items shown here could be completely different according to
individual circumstances, i.e. "VAT DUE TO CUSTOMS" in this example is on the
right, as due to Customs, but could easily be on the left as money due back from Customs.
| DEBIT | CREDIT |
| AGENTS FEES | VAT DUE TO CUSTOMS |
| LIGHT, HEAT & POWER | PAYE / NHI DUE TO REVENUE |
| CARRIAGE IN | SALES |
| CARRIAGE OUT | |
| TRADE PURCHASES | TRADE CREDITORS |
| MOTOR VEHICLES COST | MOTOR VEHICLE DEPRECIATION |
| FIXED ASSETS COSTS | FIXED ASSETS DEPRECIATION |
| RENT & RATES | |
| STATIONERY | RETAINED PROFIT |
| BANK CHARGES | |
| FLOATS | LOANS (LIABILITIES) |
| INSURANCES | |
| PACKAGING / POSTAGE COSTS | |
| TRAVEL EXPENSES | |
| WAGES & SALARIES | |
| CASH IN HAND | |
| CASH AT BANK | |
| TREASURY DEPOSIT ACCOUNT |
As I have already stated, this is a very basic example. There is far too
much to explain here regarding this subject, but if you have more questions and would
like to send them to me, I will do my very best to answer.
SALES LEDGER
Invoices
Credits
Payments Received
Allocations
Credit Control
PURCHASE LEDGER
Invoices
Credits
Issue Of Payments
Allocations
Account Queries
CASH BOOK
Entry of information
Accounting for VAT
Bank Statement Reconciliation
FIXED ASSETS
Depreciation
Net Book Value