In large scale business organisations, the number of accounts may run into hundreds. It is not always possible for a businessman to accommodate all these accounts in one ledger. They, therefore, maintain more than one ledger.
These ledgers may be as follows:
- Assets Ledger: It contains accounts relating to assets only e.g. Machinery account, Building account, Furniture account, etc.
- Liabilities Ledger: It contains the accounts of various liabilities e.g. Capital (Owner or partner), Loan account, Bank overdraft, etc.
- Revenue Ledger: It contains the revenue accounts e.g.. Sales account, Commission earned account, Rent received account, interest received account, etc.
- Expenses Ledger: It contains the various accounts of expenses incurred, e.g. Wages account, Rent paid account, Electricity charges account, etc.
- Debtors Ledger: It contains the accounts of the individual trade debtors of the business. Individuals, firms and institutions to whom goods and services are sold on credit by business become the ‘trade debtors’ of the business.
- Creditors Ledger: It contains the accounts of the individual trade Creditors of the business. Individuals, firms and institutions from whom a business purchases goods and services on credit are called ‘trade creditors’ of the business.
- General Ledger: It contains all those accounts which are not covered under any of the above types of ledger. For example Landlord A/c, Prepaid insurance A/c etc.