Purchases Ledger This contains all the "T" accounts of all the credit suppliers. Each "T" account here will give the firm the exact amount payable to each supplier
Subsidiary ledgers The sales ledger and the purchases ledger are examples of subsidiary ledgers. Other examples of subsidiary ledgers are a fixed asset ledger and a payroll ledger. The purpose of subsidiary ledgers is to reduce the amount of detail found in the general ledger.
The General Ledger This contains real accounts (assets, liabilities, and capital) and nominal accounts (revenue and expenses). Real accounts are maintained over several accounting periods, but nominal accounts are closed each period. There will be no personal "T" accounts for customers or suppliers in the general ledger.
The Trial Balance The trial balance is a listing of all the general ledger account balances at a particular date. Its main purpose is to ensure that all the debit and credit entries we made in the ledgers are the same. Remember that every time we put a debit entry in an account, we also put a credit entry, of an equal amount, into another account.
Example of a Trial Balance A. Finch Trial balance as at 30 Feb 2007 DrCr Bank328,000 Capital500,000 Purchases25,000 Sales3,000 Delivery van150,000 503,000