Ledger Distribution

1. Large businesses require more than one ledger to record transactions.
2. Ledger can be divided into three types namely General Ledger,  Debtors Ledger (Sales Ledger) and Creditors Ledger (Purchase Ledger). Each type has the following special functions:

Ledger Type	Function
General Ledger	Records all accounts except for debtors merchandise and creditors merchandise. (General ledger also records assets and creditors of assets).)
Debtors Ledger	Records debtors account transaction only.
Creditors Ledger	Records debtors account transaction only.

3. Debtors Account and Creditors Account contains many entries, therefore both accounts are separated from the General Ledger and saved in a small ledger.
4. The purposes of Ledger Distribution are
(a) To make sure the recording workload can be distributed evenly among accounting clerks
(b) To facilitate easy referencing as each ledger has a specific account.
(c) To control mistakes and allow mistakes to be detected as different clerks are assigned to take care of certain ledger books at a time.
(d) To improve the efficiency and quality of the recording.