This document summarizes the general and subsidiary ledgers for a business. The general ledger contains asset, liability, and capital accounts. The income statement accounts track operating revenue, cost of merchandise, and operating expenses. The accounts payable ledger lists vendors the business purchases from. The accounts receivable ledger contains customer accounts that purchase items on credit.

1. General and Subsidiary Ledgers

2. General LedgerThis has the accounts from the Chart of Accounts – like found on p.238 of your text.ASSET ACCOUNTS1110 - Cash1120 - Accounts Receivable 1130 - Allowance for Uncollectible Accounts1140 – Merchandise Inventory1150 – Supplies1160 – Prepaid Insurance1210- Accounts Payable1220 – Accumulated Depreciation – Equipment

3. LIABILITY ACCOUNTS2110 – Accounts Payable2120 – Sales Tax PayableCAPITAL ACCOUNTS3110 – Sally Bush, Capital3120 – Sally Bush, Drawing3130 – Leon Moreno, Capital3140 – Leon Moreno, Drawing3150 – Income Summary

4. Income Statement AccountsOPERATING REVENUE4110 – SalesCOST OF MERCHANDISE5110 – PurchasesOPERATING EXPENSES6110 – Bad Debts Expense6120 – Credit Card Fee Expense6130 – Depreciation Expense – Equipment6140 – Insurance Expense6150 – Miscellaneous Expense6160 – Rent Expense – Store6170 – Salary Expense6180 – Supplies Expense

5. Accounts Payable LedgerThese are usually vendors from whom the business is purchases something. The vendor will send the items with an invoice which the business will use to post to the ledger.210 – Ace Desk-Mate220 – Baker Supply230 – Desk Gallery240 – Enfield Office Furniture250 – F & G Office Supplies260 – Office Products

6. Accounts Receivable LedgerYou will notice that each account has the name of a person who purchases items on an account. 110 – Steven Aikens120 – Martin Baxter130 – Mary Bowles140 – Kathy Byron150 – Hilda Fields160 – Ramos Lopez When one of these people purchase an item on account, that total is added to the accounts receivable ledger for that amount. When they make a payment, that amount is taken off.