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GOING CONCERN CONCEPT is the underlying assumption that any accountant makes when he prepares a set of accounts. That the business under consideration will remain in existence for the foreseeable future.
RESERVE CAPITAL is that part of the nominal (current value) of a business that has not yet been called up. It is thus a reserve, which can be drawn on in case of need.
LEDGER is a book of accounts in which data from transactions recorded in journals are posted and thereby classified and summarized. The ledger is typically divided up into (traditionally physical separate books): a. Purchases/Creditors Ledger is the subsidiary ledger in which creditors accounts are recorded; also known as the bought ledger. Each creditors account is credited with purchases and debited with cash paid, discounts received and returns outward. The detail in the creditors ledger is summarized in the creditors ledger control account kept in the general ledger; b. Sales/Debtors Ledger is the subsidiary ledger in which debtors accounts are recorded; also known as the sold ledger. Each debtors account is debited with sales and credited with cash received, discounts allowed and returns inward. The detail in the debtors ledger is summarized in the debtors ledger control account kept in the general ledger; c. General/Impersonal Ledger is a book of final entry summarizing all of a companys financial transactions, through offsetting debit and credit accounts, e.g. liability, reserve, capital, income and expense accounts; and d. Private Ledger is confidential and records items such as capital, loans, mortgages, directors salaries and awards, etc.
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