Ledger accounts: A computerized accounts perspective

Handling ledgers in computerized accounts

Various intuitive and user-friendly computerized systems exist for both accountants and novice users. Such interactive and easy-to-use systems from leading vendor/s are listed below. But even as we talk about systems that are enablers of good accounts practices using computers, it is important to have a grasp of a few things. All business transactions are recorded in the books of accounts.

Classification of Books of Accounts


This is the book that is required for proper records of the transaction.

  • Has two sides i.e. left- and right-hand side
  • The left-hand side is used for debit entry and right-hand side is used for credit entry
DR Format      CR Format
N/B Due to merchandise in accounting, ledger cards are increasingly used.

Types of ledgers

General or Nominal Ledger

This ledger contains the account relating to the proprietor and other nominal transactions like purchase, sales and expenses etc. All nominal accounts are maintained in this ledger.

Purchase creditors ledger

This is where personal accounts of creditors can be maintained.

Sales ledger/Debtors

Used to maintain debtors accounts.

Subsidiary Books

This are the Books of original entry. They are listed as follows:

Purchase day books or Journals

This records the details and amounts of all goods sold on credit.

Purchase Return Books or Return outward Journal.

It records the details and amounts of goods returned by creditors.

Sale Return Book or Return Inward journal.

It records details and amount of goods returned by the debtors.

Pet Cash

Records small case receipts or payments. Also used to analyze the expenses paid in cash.

Journal or Diary

The journal is the daybook in which we can record the details of any transaction that can’t be recorded in other subsidiary books.

Uses of Subsidiary Books

  • Record purchases or sales of assets
  • Corrects errors.
  • Record opening/ closing entries.

The Concept of Double Entry System

States that for every debit entry made, there must be a credit entry i.e., for every transaction at least two accounts must be affected.

Classification of accounts
Classifications of accounts
Picture of classification of accounts
Personal Account

Personal accounts contain the name of the business, person or firm. In a ledger there maybe three types of personal accounts namely: -

  • Capital accounts.
  • Creditors account
  • Debtors account
Impersonal Account
  • They don’t contain the name of any person or business, they can be real accounts related tangible items e.g., building or nominal accounts which related to tangible items e.g., purchases, sales etc.


M. Williams begins to deal in furniture with capital of ksh 50,000 in cash as of January 1st, 2021. He made the following transactions during the month.

  • January 5th, he purchased two sofa sets at shs. 2000 paying cash
  • January 7th, he purchased 1 dining table worth with 6 chairs for cash shs.1000
  • January 10th, he sold one sofa set for shs. 3000
  • January 15th, he sold one dining table and 6 chairs for shs. 1750
  • January 20th, he sold the remaining sofa sets for shs. 2800
  • January 30th, he paid shs. 300 for advertisement

Make the necessary entries to record this transaction in M. Williams ledger.

Capital Account
Capital Account
Picture of Capital Account
 Cash Account
Cash account
Cash account
Purchases Account
Purchase account
Purchase account
Sales Account    
Sales account
Sales account
 Expenses account
Balancing of Accounts

This means the insertion of difference of one side of any account and carried down to the other side. This is usually done at the close of business and the balance is taken to start the following day/season.


A trial balance is a list of the debit and the credit balances in the ledgers extracted at a given date. It is the proof of the arithmetical accuracy of the double entry of the accounts in the ledger. The trial balance is required for the preparation of final accounts of any business.

Company name

Trial Balance

As at date

Capital                   -                              50,000

Particulars       Debit                    Credit

Purchases           50,000   -

Sales                     -                                 7550      

Cash                    57,550                               -                  

Expense                  300                               -

                                62,850                   52550           


With all these basic standard operating processes in accounting field, computerized accounts software such as WP ERP greatly automates these practices for easier application in your area of interest. Others include QuickBooks, Sage, and Pastel programs among others. 

Each of this software programs have their own strengths and weakness. Importantly, is for one to look out for an accounting system that offers the right solution and serve.

An investment in knowledge pays the best interest. –

Benjamin Franklin
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