An accounting system will often contain three ledgers - the sales, purchase and nominal ledgers.
In practice, ledgers will often be kept in a three column format.
In a computerised nominal ledger, the allocation of account codes is very important.
Several adjustments in the form of journal entries, will usually be required before a set of accounts can be prepared.
There are several different types of errors that can be made in the processing of transactions. Some errors will affect the profit and/or the balancing of the trial balance.
It is important to classify expenditure correctly as either capital or revenue.