nominal-ledger

Ice Ledger

Nominal Ledger

Nominal ledger is the heart of management accounts and business analysis. The company balance sheet and profit & loss accounts are split into Categories. These in-turn are further split into Groups with each group comprising of a number of Nominal Code. Because each financial transaction is associated with a nominal code, all business activity can be summarised into distinct groups and higher categories for purposes of analysis.

Categories

Categories are at the top of the nominal hiarchy and allow the business assets to be grouped into suitably categories and sub-categories to define the company balance sheet. The grouping also allows the business to be analysed in terms of its profit and loss. A typical example of Nominal Categories and sub-categories is listed below:

Balance Sheet
- Capital and Reserve
  - Share Capital
  - Reserves
- Current Assets
  - Stock
  - Debtors
  - Deposits and Cash
  - Credit Card (Debtors)
  - Bank Account
  - VAT Liability
- Current Liabilities
  - Creditors – Short Term
  - Taxation
  - Wages
  - Credit Card (Creditors)
  - Bank Account
  - VAT Liability
- Fixed Assets
  - Property
  - Plant and Machinery
  - Office Equipment
  - Furniture and Fixtures
  - Motor Vehicles
- Long Term Liabilities
  - Creditors – Long Term
Profit & Loss
- Direct Expenses
  - Labour
  - Commissions
  - Sales Promotion
  - Miscellaneous Expenses
- Overheads
  - Gross Wages
  - Rent and Rates
  - Hear, Light and Power
  - Motor Expenses
  - Travelling and Entertainment
  - Printing and Stationary
  - Professional Fees
  - Equipment Hire and Rental
  - Maintenance
  - Bank Charges and Interest
  - Depreciation
  - Bad Debt
  - General Expenses
  - Suspense and Mispostings
- Purchase
  - Purchases
  - Purchase Charges
  - Stock
- Sales
  - Product Sales
  - Export Sales
  - Sales of Assets
  - Credit Charges (Late Payments)
  - Other Sales