The number of transaction depend on size and volume of business. When the firm small the number of transaction limited. When the firm is large the number of transaction are more. The Enterprise having large volume of transactions will divide their ledger into.
A. Debtors ledger or sales ledger
In this ledger the account of all the customers debtors who regularly purchase goods from the business on credit are maintained. All transactions relating to each customer is posted to their respective accounts. It is easy to ascertain the amount due from each customer at any point of time. The debtors' ledger shows debit balance
B. Creditors ledger or purchase ledger
In this ledger the account of all the suppliers trade creditors from whom the business purchase the goods on credit are maintained. All transactions relating to each supplier is posted to their rest accounts. It is easy to ascertain the amount payable to each supplier at any point of time. The creditors' ledger shows credit balance
C. General ledger
In this ledger all accounts related to the assets, incomes, expenses are maintain.
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