Concept:Capital and drawings are private or confidential accounts of the owner, so accounting systems usually separate them from general trading ledgers and record them in the private ledger.
Explanation:The private ledger is specifically maintained for accounts of a sensitive nature, including capital, drawings, loans given or taken by the proprietor, and personal accounts. This separation protects the owner’s financial matters from being seen by every clerk who handles the general, purchases, or sales ledgers. The general ledger holds routine assets, liabilities, income, and expense accounts, but it excludes these private capital-related accounts. The purchases ledger contains only accounts of suppliers or creditors, while the sales ledger contains only accounts of customers or debtors. Neither of these subsidiary ledgers has any role in recording the owner’s capital or drawings. Therefore, capital and drawings are placed in the private ledger, not in the general, purchases, or sales ledgers.
Answer:D. private ledger