Which of the following accounts belongs to the private ledger?
-
drawing accounts
- premises account
- machinery account
- depreciation account
- V. Okafor's account
The correct answer is: A
Explanation
Private Ledger – Private ledger consists of accounts that are confidential in nature such as capital, drawings, salaries, etc. These accounts are only accessible by selected individuals.
Examples – Salaries, Drawings, Sales, Purchases, Returns Inward/Outward, Rent, Stationery, Insurance, etc.
Since drawings are used by the businessman for personal purposes it is a personal account.