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A payment ledger tracks payments for specific purposes, often created for a project or event, and can include details such as buyer’s name, invoice amount, and payment date. The complexity of the ledger depends on the project and generally accepted accounting principles.
A payment ledger is a type of accounting record that helps track payments that are disbursed for specific purposes. It’s not unusual for such a ledger to be created for a project or event, making it easy to keep track of all expenses and outlays related to that particular activity. Depending on the nature of the event or project, the general ledger can serve as a means of documenting funds received in the project, as well as any funds paid out to manage expenses associated with the activity.
Considered a basic approach to accounting, a payment book generally focuses on receiving payments related to a specific activity. For example, if students associated with a specific class choose to sell candy bars to raise money for a project, there is a good chance that a ledger will be maintained for the duration of the activity. Details included in the ledger will often list the buyer’s name, the number of units purchased, the total amount raised for the purchase, and usually even the buyer’s delivery address.
Other payment book examples may include other types of data. Information such as the amount and number of the invoice, the mode of payment used to settle the invoice, and even the date the payment is made can be included in the details. In situations where partial payments are received on account, that amount and the date of payment are likely to be included in the general ledger details. As with most types of accounting records, the goal of the general ledger is to provide accurate and concise information about financial transactions so that there is a permanent record of events, without questions about what happened and when those events took place.
The complexity of the payments ledger will often depend on both generally accepted accounting principles and the guidelines followed in creating and executing the project associated with the activity recorded in the ledger. This means that a payments ledger maintained to track activities associated with a fundraising project by a local house of worship may be somewhat simplistic compared to the ledger maintained by a multinational corporation launching an operation in a new location. As long as the details are accurate and can be verified with supporting documentation, and meet the standards required for the type of activity involved, the general ledger can be a very useful means of tracking transactions associated with the effort.
Smart Asset.
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