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A T-account is the graphical representation of a general ledger that records a business’ transactions.

It consists of the following:

 An account title at the top horizontal line of the T

 A debit side on the left

 A credit side on the right (htt24)

Sales ledger and purchases ledger

The sales ledger is an account for every customer of a business and records the money received for

products or services, plus what is still owed. This is then represented in the annual accounts,

balance sheet as either accounts receivable or, trade debtors.

The purchase ledger is an account of the suppliers of a business, documenting from whom the

organization has made purchases, what’s been paid for, and how much is still owing. This is

represented in the annual accounts, balance sheet as accounts payable or, trade creditors.

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