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    SRINIVAS_220269's Avatar
    SRINIVAS_220269 Posts: 2, Reputation: 1
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    #1

    Oct 15, 2009, 04:58 AM
    Entries of nominal ledgers
    How nominal ledgers are tallied and please advice me with example
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Oct 15, 2009, 05:29 AM

    Nominal Ledgers are tallied by incorporating
    A CONTROL ACCOUNT to each one of them.
    The Control account is the summation of the
    Item details on these ledgers.

    To be happy with all the entries on a nominal ledger one has to be capable of bridgeing
    Every account within the ledger.

    In the Case of the DEBTORS LEDGER
    The entries are:-

    1) The opening entry (balances of previous month)
    2) Add all the CREDIT SALES
    3) Subtract all the AMOUNTS RECEIVED
    4) Have as many columns to deal with
    a) adjustments made during the month to
    3) and 4) above
    5) The closing entries.

    You must control every aspect of this bridgeing.
    An EXCEL spreadsheet is excellent for this tpe of work.
    The trick here is to maintain the same list
    Of CLIENTS over the whole year.
    These include the ones that do not have
    Any transactions in the month, or the ones that repay what is owing during the month.
    DO NOT CULL THE LIST.
    Try it on say the first 40 clients and see
    How you go.
    It works even if you have 500 clients.

    In the Case of the Creditors Ledger , the same procedure is carried out.
    2) and 3) above will of course change to:

    2) CREDIT PURCHASES
    3) AMOUNTS PAID DURING THE MONTH.

    AGAIN DO NOT CULL THE LIST.
    The spreadsheets will maintain the same position every month.
    Additions of new ones are added to at the end of the month.
    A numbering system is found to be very helpful.

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