Page 48 - F3 -FA Integrated Workbook STUDENT 2018-19
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Chapter 3
Ledger accounts, debits and credits
5.1 What is a ledger account?
A ledger account is a record of the transactions relating to a particular item, for
example heat and light, bank charges and interest, sales revenue, plant and
equipment, bank loan etc.
In this chapter we are concerned with the nominal or general ledger, which is the
ledger containing all of the accounts necessary to summarise an entity’s transactions
and prepare a statement of financial position and statement of profit or loss.
Each ledger account comprises two sides: the left-hand side is referred to as the
debit side, and the right-hand side is referred to as the credit side. The format is
shown below:
Debit (Dr) Credit (Cr)
Date Details $ Date Details $
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