Tomas divides the books of his corner shop into a sales ledger, a purchases ledger, a general ledger and a cash book. Complete the table by identifying wher...

The ledger is divided so that similar accounts are grouped together and the work can be shared. The sales ledger holds the personal accounts of credit customers, the purchases ledger holds the personal accounts of credit suppliers, the cash book holds the cash and bank accounts, and the general ledger holds every remaining account, that is, the impersonal accounts covering assets, expenses, income and capital.

Why each account sits there:

1. Kalinda Wholesale is a personal account for a business Tomas buys from on credit, so it belongs with the other suppliers.
2. Shop fittings at cost is a non-current asset, an impersonal account, so it belongs in the general ledger.
3. Petty cash is money held by the business, and the petty cash book is part of the cash book, so no separate account is needed elsewhere.
4. The Blue Cafe is a personal account for a business Tomas sells to on credit, so it belongs with the other customers.
5. Discount received is an income account, and therefore impersonal, even though the discount arose on a supplier's account.

Two rows catch candidates out. Discount received is often placed in the purchases ledger because it arises when a supplier is paid early, but only the supplier's own personal account lives there. Petty cash is often placed in the general ledger, but the cash book is both a book of original entry and part of the ledger.

The quickest route through a question like this is to ask first whether the account is named after a person or business. If it is, decide between sales and purchases ledger by the direction of trade; if it is not, it is the cash book for money held and the general ledger for everything else.

Total .