Nominal Ledger - Double Entry book keeping simple example

EXAMPLE - NOMINAL LEDGER 1. Joe sets himself up in business putting  £2,000 of his own money into a business  bank account 2. Joe receives £1,000 from the bank as a loan  3. Joe buys equipment for £1,250 on credit  4. Joe spends cash of £700 on office rent

     DR         CR                 CAPITAL                   │ ① 2,000BANK LOANS                      │ ② 1,000     EQUIPMENT  ③ 1,250 │        TRADE PAYABLES               │ ③ 1,250  BANK ACCOUNT  ① 2,000 │ ④ 700  ② 1,000 │                        RENT       ④ 700 │ 

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