Information Technology · Ch 3 — Computerised Accounting with GST
Ledgers, Groups and Vouchers
Ledgers, Groups and Vouchers
The building blocks of computerised accounts
Computerised accounting is organised around three ideas: groups, ledgers, and vouchers.
Ledgers and groups
A ledger (ledger account) is an account for one item the business deals with — for example Cash, Bank, Sales, Purchases, a particular customer, or a particular supplier. Every transaction is ultimately recorded in ledgers.
To keep hundreds of ledgers tidy, each ledger is placed under a group (also called an account group or head). Groups classify ledgers by their nature, and they correspond to the parts of the final accounts. Common groups include:
| Group | Example ledgers under it | Appears in |
|---|---|---|
| Assets | Cash, Bank, Furniture, Debtors (Sundry Debtors) | Balance Sheet |
| Liabilities | Creditors (Sundry Creditors), Loans, Capital | Balance Sheet |
| Income / Revenue | Sales, Commission Received | Profit & Loss Account |
| Expenses | Purchases, Rent, Salary, Electricity | Profit & Loss Account |
Because each ledger already knows its group, the software can automatically place every balance in the correct financial statement.
Vouchers
A voucher is the electronic record of a single transaction — the software's version of a journal entry. When you enter a voucher you choose its type to suit the transaction. The common voucher types are:
| Voucher type | Used for | Example |
|---|---|---|
| Contra | Movement of money between cash and bank (or bank to bank) | Cash deposited into the bank |
| Payment | Money going out | Paying rent, paying a supplier |
| Receipt | Money coming in | Receiving cash from a customer |
| Purchase | Buying goods or services | Purchase of goods on credit |
| Sales | Selling goods or services | Sale of goods, raising a GST invoice |
An account maintained for one item the business deals with (e.g. Cash, Sales, a customer), in which all related trans …
A classification head under which ledgers are placed according to their nature (asset, liability, income, expense), so balances flow automatically to the …
The electronic record of a single transaction in accounting software — the equivalent of a journal entry — chosen by type (payment, receipt, sales, …