The Ledgers

Date: 2015-10-07; view: 474.

Although they are not the only sources, the ledgers are the primary sources of information for a variety of accounting reports on past activi­ties. This means that the types of accounting reports rendered may depend upon the classification of the data in the ledgers. The accounts to be used in the ledgers, therefore, should be related to the types of information needed by managers and others. As a minimum, the ledger information on past activities should reveal the following:

1. Functions of the business, such as demand creation, order filling, delivery, and the various activities of production.

2. Nature of object acquired or used, such as buildings, merchandise, and equipment.

3. Responsibility for expenditures, such as a departmental classifica­tion of expenditures by individuals.

The manual processing system represents the minimum disclosure of business activities; mechanical and electronic accounting processing sys­tems often provide considerably more information. This additional infor­mation may or may not be recorded in a formal ledger but it should be stored in such a manner that effective retrieval of it is possible.

Though the natural or object classification scheme dominates contem­porary accounting procedures, many companies interweave the func­tional and responsibility classifications to one degree or another into their ledger accounts. In general, a "chart of accounts" should be devel­oped for each company to indicate the accounts to be used in recording data.

Subsidiary Ledgers. Under the manual processing system, data re­corded in the journals are posted to the general ledger, and accounts such as "Equipment," "Accounts Receivable," and "Accounts Payable" appear there. In many instances, however, the general ledger accounts do not provide the detailed information needed. For example, "Accounts Receivable" and "Accounts Payable" do not disclose the customer from whom the receivable is due nor the creditor to whom the payable is to be paid. This deficiency in the general ledger is overcome by using subsidiary ledgers.

A subsidiary ledger for accounts receivable is typically a separate book containing a detailed record of the amounts owed and paid by each customer. In terms of the customary double-entry system, a sub­sidiary ledger may be defined as a detailed record of one of the general ledger accounts.

Notes:

Answer the following questions:

1. What kind of books are the ledgers?

2. What should the accounts to be used in the ledgers be related to?

3. What should the ledger information on past activities reveal?

4. Compare the manual processing system with mechanical and electronic accounting processing systems.

5. What can be observed in ledger accounts?

6. Where are data recorded in the journals posted to?

7. How is the deficiency in the general ledger overcome?

8. Describe a subsidiary ledger for accounts receivable.

XIII. To help a visitor to your office you can use the following patterns:

Would you like me to book a taxi for you?

Would you like me to ring and tell them?

What would you say in these situations:

1. Your guest has to stay the night but has nowhere arranged.

2. He wants to change his ticket from early morning to midday.

3. He doesn't know what time he can get a train to Birmingham.

4. He is worried that a document he has with him lookes badly typed.

5. He is in a terrible hurry but has some letters to take to the post.

6. He complains of toothache.

XIV. To ask someone, for example a secretary in the office you are visiting, you can use the following patterns:

Would you mind booking a taxi for me, plese?

Would you mind ringing and telling them, please?

What would you say in these situations:

1. You want a copy sent to you.

2. You want three copies (of a document you have with you).

3. You need a room booking (the 24^th April).

4. You want the secretary to ask Mr. Lennon to ring you back.

5. You want a glass of water.

6. You'd like the secretary to check what time your plane leaves.

XV. When speaking English if we wish to express a negative idea, it is often done by using not very + (positive equivalent):

This is not a very interesting book.

I don't feel very well.

It's not a very nice day, is it? (Notice this can mean: It's an absolutely awful day)

What would you say in these cases:

1. He is a bad driver.

2. It's very unimaginative.

3. They are a very old-fashioned company.

4. He doesn't take any interest.

5. They are much too cautious.

6. We got a very cold reception.

XVI. Often in writing English in a business situation double negatives are used in a similar way to give sensitive information tactfully:

NOT We believe what was done was illegal

BUT We do not believe what was done was illegal

Rewrite these sentences in a similar way:

1. We recommend restrictive credit.

2. We advise you to continue your support.

3. We suggest you allow limited time.

4. We were satisfied by the offer.

5. We made a considerable profit on that deal.

These examples are more difficult. You may need to chnge them much more:

6. We think you understood exactly what we meant.

7. These charges are normal/common.

8. We think we acted correctly.

XVII. Sometimes it can be difficult to know how to say things which we often write. Write down exactly how you would say these, including , as in the examples, any symbols which occur:

Open Mon-Fri 9am-5pm – Open from Monday to Friday, from 9 till 5

They cost £ 1.55/lb – They cost one pound fifty five per pound

Write how you would say the symbols in:

1. 17.4% of the population are left-handed.

2. We ordered 6 doz 2” screws.

_3. 1 lb = 0,45 kg approx.

_4. All quantities are guaranteed + 2¹/₂ %.

5. Interest of 12¹/₂ % is payable from June 1^st.

6. The goods are packed in cases 1.5x0.8x0.65 m. The capacity is thus approx 0.8 cu. m. per case.

7. Re your invoice No 765/14C.

8. We have recieved your letter of credit N 22331 for 26,205 D.M.

9. Tel (SDT Code 0273) 661881.

10. A ret of £ 8/sq ft is normal in the area.

11. The rate would be £ 28/delegate/day, VAT included.

12. Items marked * carry a 10% discount.

13. We can supply a ³/₄" size immediately. The ⁷/₁₆" are unfortunately currently out of stock.

14. The new metro can do 54 mpg at a steady 50 mph.

15. £ 1 = 10.19 Skr, $ 1.78 = £ 1.

16. Their turnover now exceeds £ 2,5 m.p.a.

Unit 5