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Additional resources for Accounts
The nominal ledger Accounting fundamentals: ledger accounts and double entry The petty cash imprest system Day book analysis Double entry bookkeeping The journal Definition The nominal ledger is an accounting record which summarises the financial affairs of a business. In some businesses it is called the general ledger; the two terms are inter-changeable The information contained in the books of prime entry (see Chapter 2) is summarised and posted to accounts in the nominal ledger. It contains details of assets, liabilities and capital, income and expenditure and so profit and loss.
She was now ready for her first day of market trading on 3 July 20X6. The assets and liabilities of the business have now altered, and at 3 July, before trading begins, the state of her business is as follows. Assets £ = Capital + Stall 1,800 = £2,500 + Herbs and spices Liabilities £0 650 Cash at bank 30 Cash in hand 20 2,500 The stall and the herbs and spices are physical items, but they must be given a money value. This money value is usually what they cost the business (the historical cost).
4 What are the two main financial statements drawn up by accountants? 5 Which of the following is an example of a liability? A B C D Stock Debtors Plant and machinery Loan 23 Part A: Basic Accounting NOTES 6 Which FRS deals with accounting concepts? 7 Which of the following assumptions are included in FRS 18? A B C D Money measurement Objectivity Going concern Business entity 8 Define 'going concern'. 9 What is meant by the prudence concept? 10 Only items which have a monetary value can be included in accounts.
Accounts by BPP Learning Media