WAEC Accounting 2024 Theory — Question 3

Model answer

(i) Sales ledger: records all credit sales transactions and the resulting debtor balances; it excludes cash sales and shows amounts owed by customers (debtors) at the start and end of the period. (ii) Purchases ledger: records all credit purchase transactions; the balance shows the amount owed to creditors at the beginning and end of the period. (iii) General ledger: records all transactions that do not have a specific ledger of their own, such as assets, liabilities, equity, income and expense accounts, since separating every single account would be impractical.