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HMRC internal manual

Enquiry Manual

Examining Accounts: Accounting Systems: Private Ledger

Use of the term ‘private ledger’ is less common than it was and, indeed, such ledgers are rarer nowadays. A private ledger contains accounts which otherwise would belong in the nominal ledger but which the proprietor wishes to keep confidential. A director’s loan account would almost certainly be in the private ledger. The salary voted would be credited to such a private ledger account and debited to salaries in the nominal ledger. Cash drawings and payments on his or her behalf would be debited here and credited in the cash book. Similarly the value of any asset transferred should be debited to this private ledger account and credited to the asset account at appropriate value.