What is a nominal ledger - Part 3 Print
Written by Nilsson Denver   
Friday, 04 July 2008 21:27

part 1, part 2, part 4

Let us extend out the Purchase Journal Daybook and add an extra column that tells us what we bought (what expense did we incur). And for ease of explanation I have added whether or not the transaction is a debit or a credit transaction. Also remember that debits must equal credits in value.

The Purchase Journal Daybook, page 1

Date Details Folio Total Net Vat Parts
3/1/06 Service & Parts Co. Inv 39516 SER01 121.00 100.00 21.00 100.00
______ ______ ______ ______
TOTALS 121.00 100.00 21.00 100.00
______ ______ ______ ______
______ ______ ______ ______
Cr - Dr Dr

The "Total" column value we will enter in the nominal ledger and post it to the Creditors Ledger Control A/c. We post it on the credit side as it increases the amount we owe to suppliers.

The "Net" & "Vat" total values add up to the "Total" value and we must post them into their nominal accounts. The "Net" amount is recorded in the nominal code for the type of expense incurred, in this case nominal account 201-Parts.

The "Vat" totals are recorded in the nominal account for VAT.

We will also extend the Bank Payments books and add two new columns. These two columns break down the payments between supplier payments (suppliers who we can get invoices from) and nominal payments (payments we do not get invoices for such as taxes).

The Bank Payments Daybook, page 1

Date Payee No. Folio Amount Creditor Nominal
14/1/06 Service & Parts Co. 1045 SER01 500.00 500.00
30/1/06 Wages 1046 NL330 1900.00 1900.00
______ ______ ______
TOTALS 2400.00 500.00 1900.00
______ ______ ______
______ ______ ______
CR DR DR

The "Amount" column value we will enter in the nominal ledger and post it to the Bank A/c. We post it on the credit side as it is money being paid out of your bank account.

The "Creditor" & "Nominal" total values add up to the total of the "Amount" column and we must post these into their nominal accounts. The "Creditor" column total is posted to the debit side of the Creditors Control A/c thereby reducing the amount owed to suppliers.

The nominal amount values are posted to their individual nominal accounts, in the case the net wages control account.

Here are the nominal ledgers for each account

PURCHASES & CREDITOR RELATED NOMINAL ACCOUNTS

701-Trade Creditors Control A/c
Date Details Folio Amount Date Details Folio Amount
31/1/06 Payments BP1 500.00 1/1/06 Balance b/f 500.00
31/1/06 Balance c/f 121.00 31/1/06 Invoices PB1 121.00
______ ______
621.00 621.00
______ ______
______ ______
1/2/06 Balance b/f 121.00
201-Parts A/c
Date Details Folio

Amount

 Date Details Folio

Amount
31/1/06 Invoices PB1 100.00 31/1/06 Balance c/f

100.00
______

______
100.00 100.00
______ ______
______ ______
1/2/06 Balance b/f 100.00
601-Bank A/c
Date Details Folio Amount Date Details Folio Amount
31/1/06 Payments BP1 2400.00
713-Net Wages Control A/c
Date Details Folio Amount Date Details Folio Amount
31/1/06 Payments BP1 1900.00
711-Vat Control A/c
Date Details Folio Amount Date Details Folio Amount
31/1/06 Invoices PB1 21.00

Some of these accounts are going to have more transactions posted to them so we will not close them off just yet, not before we look at the sales invoices and bank receipt transactions.

Let us extend out the Sales Journal Daybook and add an extra column that tells us what we sold (what type of sales did we make). And for ease of explanation I have added whether or not the transaction is a debit or a credit transaction. Also remember that debits must equal credits in value.

The Sales Journal Daybook, page 1

Date Details No. Folio Total Net Vat Parts Service
2/1/06 JB & Co. Ltd 101 JBC01 1210.00 1000.00 210.00 1000.00
10/1/06 JB & Co. Ltd 102 JBC01 1135.00 1000.00 135.00 1000.00
21/1/06 Red Tails Ltd 103 RED01 605.00 500.00 105.00 500.00
______ ______ ______ ______ ______
TOTALS 2950.00 2500.00 450.00 1500.00 1000.00
______ ______ ______ ______ ______
______ ______ ______ ______ ______
DR - CR CR CR

The "Total" column value is a transaction we will enter in the nominal ledger and post it to the Debtors Ledger Control A/c. We post it on the debit side as it increases the amount we are owed by customers.

The "Net & "Vat" total values add up to the "Total" column value and we must post them into their nominal accounts. The "Net" amount is recorded in the nominal code for the type of sale made, in this case Service and Parts.

The "Vat" totals are recorded in the nominal account for VAT.

We will also extend the Bank Receipts book and add two new columns. These two columns break down the receipts between customer receipts (customers who we give invoices to) and nominal receipts (receipts we do not issue invoices for such as tax refunds).

The Bank Receipts Journal Daybook, page 1

Date Payer Folio Amount Debtors Nominal
9/1/06 JB & Co. Ltd JBC01 1135.00 1135.00
15/1/06 Red Tails Ltd RED01 1210.00 1210.00

______

 ______ ______
TOTALS

2345.00

2345.00

 0.00
______ ______ ______
______ ______ ______

The "amount" column is a transaction we will enter in the nominal ledger and post it to the Bank A/c. We post it on the debit side as it is money being received into the bank a/c.

The "Debtors" & "Nominal" totals add up to the total of the "Amount" column and we must post these into their nominal accounts. The Debtor column is posted to the credit side of the Debtors Control A/c thereby reducing the amount owed by customers.

Here are the nominal ledgers for each account

SALES & DEBTOR RELATED ACCOUNTS

602-Trade Debtors Control A/c
Date Details Folio Amount Date Details Folio Amount
31/1/06 Balance b/f 2345.00 31/1/06 Receipts BR1 2345.00
31/1/06 Invoices SI1 2950.00 31/1/06 Balance c/f 2950.00
______ ______
5295.00 5295.00
______ ______
______ ______
1/2/06 Balance b/f 2950.00
101-Sales -Parts A/c
Date Details Folio Amount Date Details Folio Amount
31/1/06 Balance c/f 1500.00 31/1/06 Invoices SI1

1500.00
______

______
1500.00 1500.00
______ ______
______ ______
1/2/06 Balance b/f 1500.00
102-Sales -Services A/c
Date Details Folio Amount Date Details Folio Amount
31/1/06 Balance c/f 1000.00 31/1/06 Invoices SI1

1000.00
______

______
1000.00 1000.00
______ ______
______ ______
1/2/06 Balance b/f 1000.00
601-Bank A/c
Date Details Folio Amount Date Details Folio Amount
31/1/06 Receipts BR1

2345.00

 31/1/06 Payments BP1 2400.00
711-Vat Control A/c
Date Details Folio Amount Date Details Folio Amount
31/1/06 Invoices PB1 21.00 31/1/06 Invoices SI1 450.00

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(c) Nilsson Denver Ltd 2007
Last Updated on Sunday, 30 October 2011 21:43
 

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