Ledger accounts

In this lesson

1. 0:00 Ledger accounts and missing figures
2. 1:07 Trade receivables balancing and credit sales
3. 2:38 Calculating total sales from receivables
4. 3:44 Trade payables balancing and credit purchases
5. 5:16 Calculating total purchases from payables
6. 6:18 Expenses ledger and amounts paid
7. 8:01 Bank ledger and identifying drawings
8. 10:14 Worked example: Leonard's bank account
9. 12:04 Accounting for stolen cash and insurance

About this lesson

By applying double entry principles and reconstructing accounts like receivables, payables, expenses, and bank ledgers, you can work backwards from known information to find the missing piece. This skill is essential for FA and FR papers, and appears frequently in both objective tests and case study scenarios where you need to calculate credit sales, credit purchases, cash payments, or drawings. The lesson walks you through the systematic approach: open the relevant ledger account, enter all known balances and transactions, then use the balancing principle to identify what's missing. You'll see practical examples including how to find credit sales from a receivables account, credit purchases from a payables account, cash paid from an expense account, and drawings from a bank ledger. Each example shows how the same logic applies across different account types, so once you grasp the method, you can apply it confidently to any scenario. You'll also learn important variations, such as calculating total sales when you don't know the split between cash and credit sales, and how to handle special situations like stolen cash and goods taken by the owner. The key is reading the question carefully to identify what information you have and what you need to find, then letting the double entry framework guide you to the answer.

Duration: 13m