Ledger accounts: receivables ledger, payables ledger, general ledger accounts
A business keeps three separate ledgers to organise its accounts. The receivables ledger tracks money customers owe. The payables ledger tracks money the business owes suppliers. The general ledger holds every other account.
Real World
Tesco maintains a payables ledger with a separate account for each supplier — Unilever, Coca-Cola, Nestlé — so it can track exactly how much it owes each one at any moment.
Exam Focus
Never confuse receivables ledger with the receivables control account — they are separate; the control account totals what individual accounts contain.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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