All 25 Sales & Purchase Ledgers questions
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What is the difference between the sales ledger and the sales account? What is a debtor and a creditor? What is a statement of account sent to customers? Why are the sales and purchases ledgers called memorandum (subsidiary) ledgers? What is accounts receivable and accounts payable? What is a credit customer versus a cash customer? What is a purchase invoice checked against before posting? How is a customer's account in the sales ledger written up? How is a supplier's account in the purchases ledger written up? What is a contra between the sales and purchases ledgers (set-off)?
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What documents update the sales and purchases ledgers?

Beginner

Answer

The sales ledger is updated from the sales day book (invoices), sales returns day book (credit notes), and the cash book (receipts and discounts allowed). The purchases ledger is updated from the purchases day book (invoices), purchases returns day book (credit notes), and the cash book (payments and discounts received).
Real-world example Invoices, credit notes, and cash book receipts together keep each customer's sales ledger account up to date.

Common follow-ups: Which day books feed the purchases ledger? | Where do discounts come from?

Books of Prime Entry Cash Book & Petty Cash Sales & Purchase Ledgers
All 25 Sales & Purchase Ledgers questions