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Q. What is Contractor Ledger?
Accounts relating to contractors should be kept as personal accounts in contractor's ledger and a separate folio should be opened in the Contractor's ledger for each Contractor should exhibit all transactions with him , Whether relating to one or several works or to materials purchased from him or supplied to him . The Contractor's ledger should show the number and amount of each passed bill and certificate , briefly naming the work and the number and amount of the cheque . The amount of advance granted to a Contractor as well as the value of material rates , should be debited to his account and a receipt for the value there of taken from him in respect of the debits.
The Contractor's ledger should be posted as bill are paid it should be closed and balanced monthly . A copy of his accounts in the ledger may be furnished to any Contractor who wants it .
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